Abstract
Labor-Market Effects of Intra-Industry Trade: Evidence for the United Kingdom. - According to the "smooth adjustment hypothesis", the labor-market adjustment costs entailed by trade liberalization are lower if trade expansion is intra-industry rather than inter-industry in nature. In this paper, we study the link between trade and labor market changes in UK manufacturing industries during the 1980s. We use industry-level measures of unemployment duration and wage variability as proxies for adjustment costs, and we relate them to various measures of intra-industry trade. Our evidence offers some support for the smooth adjustment hypothesis.
| Original language | English |
|---|---|
| Pages (from-to) | 207-228 |
| Number of pages | 22 |
| Journal | Weltwirtschaftliches Archiv |
| Volume | 138 |
| Issue number | 2 |
| Publication status | Published - 1 Jan 2002 |
ASJC Scopus subject areas
- Business, Management and Accounting(all)
