Intra-industry trade and labour market adjustment: A reassessment using data on individual workers
AbstractWe re-examine the relationship between intra-industry trade and labour reallocation, using individual-level data on manufacturing worker moves in the United Kingdom. The contribution of this analysis is twofold. First, we estimate the impact of intra-industry trade on worker moves between occupations as well as between industries. Second, we run individual-level regressions that allow us to control for worker heterogeneity. Our results suggest that intra-industry trade does have the stipulated attenuating effect on worker moves, both between occupations and between industries, but that this effect is relatively small compared to other determinants of labour reallocation.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The University of Sheffield, Department of Economics in its series Working Papers with number 2005005.
Length: 29 pages
Date of creation: May 2005
Date of revision: May 2005
Intra-industry trade; worker mobility; labour-market adjustment.;
Other versions of this item:
- Marius Brülhart & Robert J. R. Elliott & Joanne Lindley, 2006. "Intra-Industry Trade and Labour-Market Adjustment: A Reassessment Using Data on Individual Workers," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(3), pages 521-545, October.
- F1 - International Economics - - Trade
- J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-03-24 (All new papers)
- NEP-INT-2007-03-24 (International Trade)
- NEP-LAB-2007-03-24 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Shin, Kwanho, 1997. "Inter- and Intrasectoral Shocks: Effects on the Unemployment Rate," Journal of Labor Economics, University of Chicago Press, vol. 15(2), pages 376-401, April.
- Fallick, Bruce Chelimsky, 1993.
"The Industrial Mobility of Displaced Workers,"
Journal of Labor Economics,
University of Chicago Press, vol. 11(2), pages 302-23, April.
- Mary Lovely & Douglas Nelson, 2002. "Intra-industry trade as an indicator of labor market adjustment," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 138(2), pages 179-206, June.
- Michelle Haynes & Richard Upward & Peter Wright, 2002.
"Estimating the wage costs of inter- and intra- sectoral adjustment,"
Review of World Economics (Weltwirtschaftliches Archiv),
Springer, vol. 138(2), pages 229-253, June.
- Haynes, Michelle & Upward, Richard & Wright, Peter, 2001. "Estimating the Wage Costs of Inter- and Intra-Sectoral Adjustment," CEPR Discussion Papers 2710, C.E.P.R. Discussion Papers.
- R J R Elliott & J Lindley, 2003. "Trade, Skills and Adjustment Costs: A Study of Intra-Sectoral Labour Mobility in the UK," The School of Economics Discussion Paper Series 0312, Economics, The University of Manchester.
- Abdul Azhar & Robert Elliott, 2003.
"On the measurement of trade-induced adjustment,"
Review of World Economics (Weltwirtschaftliches Archiv),
Springer, vol. 139(3), pages 419-439, September.
- R J R Elliott & J Lindley, 2003.
"Skill Specificity and Labor Mobility: Occupational and Sectoral Dimensions,"
The School of Economics Discussion Paper Series
0313, Economics, The University of Manchester.
- Robert J. R. Elliott & Joanne Lindley, 2006. "Skill Specificity And Labour Mobility: Occupational And Sectoral Dimensions," Manchester School, University of Manchester, vol. 74(3), pages 389-413, 06.
- Marius Brülhart & Robert Elliott, 2002. "Labour-market effects of intra-industry trade: Evidence for the United Kingdom," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 138(2), pages 207-228, June.
- Neal, Derek, 1995. "Industry-Specific Human Capital: Evidence from Displaced Workers," Journal of Labor Economics, University of Chicago Press, vol. 13(4), pages 653-77, October.
- Dolton, Peter J & Kidd, Michael P, 1998. "Job Changes, Occupational Mobility and Human Capital Acquisition: An Empirical Analysis," Bulletin of Economic Research, Wiley Blackwell, vol. 50(4), pages 265-95, October.
- Richard Brecher & Eshan Choudhri, 1991.
"Pareto Gains from Trade, Reconsidered: Compensating for Job Lost,"
Carleton Economic Papers
91-16, Carleton University, Department of Economics, revised May 1994.
- Brecher, Richard A. & Choudhri, Ehsan U., 1994. "Pareto gains from trade, reconsidered : Compensating for jobs lost," Journal of International Economics, Elsevier, vol. 36(3-4), pages 223-238, May.
- Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-38, May.
- Greenaway, David & Upward, Richard & Wright, Peter, 2000. "Sectoral Transformation and Labour-Market Flows," Oxford Review of Economic Policy, Oxford University Press, vol. 16(3), pages 57-75, Autumn.
- Nuno Carlos Leitão & Bogdan Dima & Dima (Cristea) Stefana, 2013. "Marginal Intra-industry Trade and Adjustment Costs in Labour Market," Working Papers 2013.39, Fondazione Eni Enrico Mattei.
- A K M Azhar & Robert R J Elliott, 2007.
"On the Measurement of Changes in Product Quality in Marginal Intra-Industry Trade,"
07-09, Department of Economics, University of Birmingham.
- Abdul K. M. Azhar & Robert J. R. Elliott, 2008. "On the Measurement of Changes in Product Quality in Marginal Intra-Industry Trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 144(2), pages 225-247, July.
- Manuel Cabral & Joana Silva, 2006. "Intra-Industry Trade Expansion and Employment Reallocation between Sectors and Occupations," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(3), pages 496-520, October.
- Valerija Botrić, 2013. "Determinants of Intra-industry Trade between Western Balkans and EU-15: Evidence from Bilateral Data," International Journal of Economic Sciences and Applied Research (IJESAR), Technological Educational Institute (TEI) of Kavala, Greece, vol. 6(2), pages 7-23, September.
- David Greenaway & Chris R. Milner, 2006. "Recent Developments in Intra-Industry Trade: Introduction by Guest Editors," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(3), pages 425-432, October.
- Götz Zeddies, 2010. "International Trade Patterns and Labor Markets – An Empirical Analysis for EU Member States," IWH Discussion Papers 15, Halle Institute for Economic Research.
- Abdul Azhar & Robert Elliott, 2011. "A Measure of Trade Induced Adjustment in Volume and Quality Space," Open Economies Review, Springer, vol. 22(5), pages 955-968, November.
- Roger White & Cheng Chen, 2012. "US manufacturing and vertical/horizontal intra-industry trade: examining the smooth adjustment hypothesis," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 4(1/2), pages 1-20.
- Imre Ferto & Károly Attila Soos, 2008. "Marginal Intra-Industry Trade and Adjustment Costs - A Hungarian-Polish Comparison," IEHAS Discussion Papers 0815, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
- Horácio Faustino & Nuno Leitão, 2009. "Intra-industry trade and labor costs: The smooth adjustment hypothesis," Working Papers Department of Economics 2009/17, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- Saeed Rasekhi & Saman Ghaderi, 2012. "Marginal intra-industry trade and adjustment costs: the case study of Iranâ€™s manufacturing industries," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 4(1/2), pages 35-43.
- Goetz Zeddies, 2012. "International trade patterns and labour markets â€“ an empirical analysis for EU member states," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 4(1/2), pages 96-115.
- World Bank, 2010. "Ukraine - Country Economic Memorandum : Strategic Choices to Accelerate and Sustain Growth," World Bank Other Operational Studies 2905, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Georgios Efthyvoulou).
If references are entirely missing, you can add them using this form.