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Trade, Skills and Adjustment Costs: A Study of Intra‐Sectoral Labor Mobility

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  • Robert J. R. Elliott
  • Joanne K. Lindley

Abstract

The relationship between the ability of workers to change job, sector or industry and the short‐run adjustment costs associated with a reallocation of labor is the subject of lively debate among academics. This paper examines recent sector and industry level labor market adjustment in the UK using data from the Quarterly Labour Force Survey. We explore the link between the nature of UK trade patterns and labor adjustment within the manufacturing sector and employ a multinomial logit approach to examine the determinants of “within” and “between” industry mobility. By controlling for individual skill specificity we find some evidence of a link between intra‐industry trade and intra‐industry labor adjustment.

Suggested Citation

  • Robert J. R. Elliott & Joanne K. Lindley, 2006. "Trade, Skills and Adjustment Costs: A Study of Intra‐Sectoral Labor Mobility," Review of Development Economics, Wiley Blackwell, vol. 10(1), pages 20-41, February.
    • Handle: RePEc:bla:rdevec:v:10:y:2006:i:1:p:20-41
    DOI: 10.1111/j.1467-9361.2005.00298.x
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    References listed on IDEAS

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    1. Bell, Una Louise, 2001. "Labour reallocation during transition: the case of Poland," ZEW Discussion Papers 01-38, ZEW - Leibniz Centre for European Economic Research.
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    Cited by:

    1. Larch Mario & Lechthaler Wolfgang, 2011. "Comparative Advantage and Skill-Specific Unemployment," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-58, April.
    2. Wolfgang Lechthaler & Mariya Mileva, 2019. "Trade liberalization and wage inequality: new insights from a dynamic trade model with heterogeneous firms and comparative advantage," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 155(3), pages 407-457, August.
    3. Azhar A. KM & Elliott Rob J. & Liu Junting, 2012. "Product Quality, Trade, and Adjustment: The China-ASEAN Experience," Global Economy Journal, De Gruyter, vol. 12(2), pages 1-28, June.
    4. 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;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 144(2), pages 225-247, July.
    5. 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.
    6. Saeed Rasekhi & Saman Ghaderi, 2012. "Marginal intra-industry trade and adjustment costs: the case study of Iran’s manufacturing industries," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 4(1/2), pages 35-43.
    7. Horácio Faustino & Nuno Leitão, 2009. "Intra-industry trade and labor costs: The smooth adjustment hypothesis," Working Papers Department of Economics 2009/17, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    8. Piriu, Andreea Alexandra, 2021. "Trade Shocks, Job Insecurity and Individual Health," GLO Discussion Paper Series 992, Global Labor Organization (GLO).
    9. 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.
    10. Imre Ferto, 2009. "Labour Market Adjustment and Intra‐Industry Trade: The Effects of Association on the Hungarian Food Industry," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(3), pages 668-681, September.
    11. Zhihong Chen & Jabbar Ul-Haq & Hubert Visas & Ahmed Raza Cheema, 2019. "Globalization and Working Environment Nexus: Evidence From Pakistan," SAGE Open, , vol. 9(2), pages 21582440198, May.
    12. repec:ilo:ilowps:468791 is not listed on IDEAS
    13. Luo, Tianyuan & Escalante, Cesar, 2014. "Determinants of Occupational Changes of U.S. Migrant Farm Workers under Recessionary Times," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162415, Southern Agricultural Economics Association.
    14. Roy, Jayjit, 2017. "On the environmental consequences of intra-industry trade," Journal of Environmental Economics and Management, Elsevier, vol. 83(C), pages 50-67.
    15. 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.
    16. Neneng Miskiyah & Taufiq Marwa & Tatang A.M. Sariman & Rosmiyati Chodijah, 2017. "Inter Sector Labor Mobility in Palembang, Indonesia," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 5(2), pages 73-83.
    17. repec:wsr:wpaper:y:2015:i:135 is not listed on IDEAS
    18. Imre Ferto & Károly Attila Soos, 2008. "Marginal Intra-Industry Trade and Adjustment Costs - A Hungarian-Polish Comparison," CERS-IE WORKING PAPERS 0815, Institute of Economics, Centre for Economic and Regional Studies.

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