Estimating the Wage Costs of Inter- and Intra-Sectoral Adjustment
The proposition that labour market adjustments to intra-industry trade are less costly than adjustments to inter-industry trade is a widely-held belief amongst trade economists. If it is the case that there are significant sector-specific skills, then this ‘smooth adjustment hypothesis’ seems intuitive. However, direct evidence relating to this issue remains largely anecdotal. In this Paper we adopt the methodology of the micro-econometric labour literature to estimate the returns to tenure within firms, industries and occupations in order to predict the costs, in terms of wage losses, of moving jobs between and within sectors. To do this we use a large panel of individual workers for the UK over a long period (1975–1998), which enables us to control for unobserved fixed effects which may jointly determine the propensity to move jobs and the wage level.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
|Date of creation:||Feb 2001|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
|Order Information:|| Email: |
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.:
- Joseph G. Altonji & Nicolas Williams, 2005.
"Do wages rise with job seniority? A reassessment,"
Industrial and Labor Relations Review,
ILR Review, Cornell University, ILR School, vol. 58(3), pages 370-397, April.
- Parent, D., 1995.
"Industry-Specific Capiatl and the Wage Profile: Evidence from the NLSY and the PSID,"
Cahiers de recherche
9508, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Daniel Parent, 1995. "Industry-Specific Capital and the Wage Profile: Evidence from the NLSY and the PSID," CIRANO Working Papers 95s-26, CIRANO.
- Parent, D., 1995. "Industry-Specific Capiatl and the Wage Profile: Evidence from the NLSY and the PSID," Cahiers de recherche 9508, Universite de Montreal, Departement de sciences economiques.
- Daniel Parent, 1995. "Industry-Specific Capital and the Wage Profile: Evidence from the NLSY and the PSID," Working Papers 729, Princeton University, Department of Economics, Industrial Relations Section..
- Robert H. Topel, 1990.
"Specific Capital, Mobility, and Wages: Wages Rise with Job Seniority,"
NBER Working Papers
3294, National Bureau of Economic Research, Inc.
- Topel, Robert H, 1991. "Specific Capital, Mobility, and Wages: Wages Rise with Job Seniority," Journal of Political Economy, University of Chicago Press, vol. 99(1), pages 145-76, February.
- Joseph Altonji & R. Shakotko, 1985.
"Do Wages Rise with Job Seniority?,"
567, Princeton University, Department of Economics, Industrial Relations Section..
- Louis S. Jacobson & Robert J. LaLonde & Daniel G. Sullivan, 1992.
"Earnings losses of displaced workers,"
Working Paper Series, Macroeconomic Issues
92-28, Federal Reserve Bank of Chicago.
- Andrew Weiss, 1995. "Human Capital vs. Signalling Explanations of Wages," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 133-154, Fall.
- White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
- Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9.
- Lori G. Kletzer, 1998. "Job Displacement," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 115-136, Winter.
- Heckman, James J, 1979.
"Sample Selection Bias as a Specification Error,"
Econometric Society, vol. 47(1), pages 153-61, January.
- Kim, Dae Il, 1998. "Reinterpreting Industry Premiums: Match-Specific Productivity," Journal of Labor Economics, University of Chicago Press, vol. 16(3), pages 479-504, July.
- Kletzer, Lori Gladstein, 1989. "Returns to Seniority after Permanent Job Loss," American Economic Review, American Economic Association, vol. 79(3), pages 536-43, 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.
When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:2710. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()The email address of this maintainer does not seem to be valid anymore. Please ask to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.