Trade and labour markets: vertical and regional differentiationin Italy
AbstractThe labour market misfortunes of the less skilled and rapid growth of international trade in manufactured goods with less advanced countries are linked by the paradoxical observation that trade theorists are in the forefront of those denying the importance of trade in income distribution. This paper analyses this conclusion by stressing the importance of vertical differentiation of trade flows and regional differentiation of skills in order to identify labour market effects of trade integration. Vertical and regional differentiation in trade and labour markets are analysed for a country, Italy, where these two elements seem to play a crucial role. The results show a likely displacement effect on unskilled labour due to trade flows with less advanced countries. Given the characteristics of Italian trade and labour markets, a stronger trade‐induced displacement effect on demand for unskilled labour takes place in the North of the country. Thus the vertical differentiation in Italian intra‐industry trade is a warning against understating the effect of trade on labour markets if product heterogeneity is not adequately considered. The regional differentiation of skill intensity is another warning against understating the effect of trade on labour markets whenever cross‐sectoral effects and the change in relative specialization are not adequately considered. Copyright Fondazione Giacomo Brodolini and Blackwell Publishers Ltd 2000.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Department of Economics, University of Trento, Italia in its series Department of Economics Working Papers with number 9810.
Date of creation: 1998
Date of revision:
Other versions of this item:
- Giuseppe Celi & Maria Luigia Segnana, 2000. "Trade and Labour Markets: Vertical and Regional Differentiation in Italy," LABOUR, CEIS, vol. 14(3), pages 441-472, 09.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Anna M. Falzoni & Alessandra Venturini & Claudia Villosio, 2004.
"Wage Differentials and International Trade in Italy Using Individual Micro Data 1991-1996,"
Development Working Papers
190, Centro Studi Luca d\'Agliano, University of Milano.
- Falzoni, Anna M. & Venturini, Alessandra & Villosio, Claudia, 2004. "Wage Differentials and International Trade in Italy Using Individual Micro Data 1991-1996," IZA Discussion Papers 1204, Institute for the Study of Labor (IZA).
- Anna M.Falzoni & Alessandra Venturini & Claudia Villosio, 2005. "Wage Differentials and International Trade in Italy Using Individual Micro Data 1991-1996," Working Papers 0502, University of Bergamo, Department of Economics.
- Enrico Marelli & Giuseppe Porro, 2000. "Flexibility and innovation in regional labour markets: The case of Lombardy," Departmental Working Papers 2000-08, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Luciano Andreozzi).
If references are entirely missing, you can add them using this form.