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Intra-industry trade and labour market adjustment: A reassessment using data on individual workers

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Author Info
Joanne Kathryn Lindley () (Department of Economics, The University of Sheffield)
Marius Brullhart
Rob Elliott

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Abstract

We 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.

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File URL: http://www.shef.ac.uk/content/1/c6/03/91/72/SERP2005005.pdf
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File Function: First version, 2005
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File URL: http://www.shef.ac.uk/content/1/c6/03/91/72/SERP2005005.pdf
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Publisher Info
Paper provided by The University of Sheffield, Department of Economics in its series Working Papers with number 2005005.

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Length: 29 pages
Date of creation: May 2005
Date of revision: May 2005
Handle: RePEc:shf:wpaper:2005005

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Related research
Keywords: Intra-industry trade; worker mobility; labour-market adjustment.;

Other versions of this item:

Find related papers by JEL classification:
F1 - International Economics - - Trade
J62 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Job, Occupational and Intergenerational Mobility; Promotion
C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models

This paper has been announced in the following NEP Reports:

References listed on IDEAS
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.:
  1. 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. [Downloadable!] (restricted)
    Other versions:
  2. 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. [Downloadable!] (restricted)
  3. 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. [Downloadable!]
  4. 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. [Downloadable!] (restricted)
    Other versions:
  5. Dolton, Peter J & Kidd, Michael P, 1998. "Job Changes, Occupational Mobility and Human Capital Acquisition: An Empirical Analysis," Bulletin of Economic Research, Blackwell Publishing, vol. 50(4), pages 265-95, October.
  6. 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. [Downloadable!] (restricted)
  7. 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. [Downloadable!] (restricted)
  8. 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. [Downloadable!] (restricted)
  9. 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. [Downloadable!] (restricted)
  10. 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. [Downloadable!] (restricted)
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  11. 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. [Downloadable!] (restricted)
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  12. 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.
  13. 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. [Downloadable!] (restricted)
    Other versions:
Full references

Cited by:
(explanations, 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.)

  1. 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. [Downloadable!] (restricted)
    Other versions:
  2. 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. [Downloadable!] (restricted)
  3. 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. [Downloadable!] (restricted)
  4. Imre Ferto & Károly Attila Soos, 2008. "Marginal Intra-Industry Trade and Adjustment Costs - A Hungarian-Polish Comparison," IEHAS Discussion Papers 0815, Institute of Economics, Hungarian Academy of Sciences. [Downloadable!]
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