TY - JOUR
T1 - Intra-industry trade expansion and employment reallocation between sectors and occupations
AU - Cabral, Manuel
AU - Silva, Joana
N1 - Funding Information:
Remark: We are grateful to participants at the Spring 2005 Midwest International Economics Meetings, the 4th Annual Conference of the European Economics and Finance Society and seminars at the University of Nottingham. We would specially like to thank David Greenaway, Rod Falvey, Peter Wright, Richard Upward, Maria Paula Fontoura and Nuno Sousa for very helpful comments on earlier versions of this paper. We are grateful to the Ministry of Employment, Statistics Department, for access to data used in this article. Joana Silva gratefully acknowledges financial support from Fundação para a Ciência e a Tecnologia (Grant No. SFRH/BD/13162/2003). The usual disclaimer applies. Please address correspondence to Joana Silva, Office B52, School of Economics, University of Nottingham, Nottingham, NG7 2RD; e-mail: [email protected]
Copyright:
Copyright 2006 Elsevier B.V., All rights reserved.
PY - 2006/10
Y1 - 2006/10
N2 - This paper re-examines the relationship between trade and labour market adjustment costs by explicitly considering the effects of occupational mobility. We investigate the hypothesis that intra-industry trade expansion entails lower adjustment costs than inter-industry trade expansion-the so-called Smooth Adjustment Hypothesis (SAH). This paper makes two new contributions. First, the introduction of a new adjustment variable that considers reallocation between sectors and occupations. Second, a test of the SAH using panel data with relevant trade and non-trade control variables, which overcomes some of the methodological limitations of former studies. The results suggest a confirmation of the SAH and stress the importance of considering the effects of worker moves between occupations in the study of trade-induced adjustment.
AB - This paper re-examines the relationship between trade and labour market adjustment costs by explicitly considering the effects of occupational mobility. We investigate the hypothesis that intra-industry trade expansion entails lower adjustment costs than inter-industry trade expansion-the so-called Smooth Adjustment Hypothesis (SAH). This paper makes two new contributions. First, the introduction of a new adjustment variable that considers reallocation between sectors and occupations. Second, a test of the SAH using panel data with relevant trade and non-trade control variables, which overcomes some of the methodological limitations of former studies. The results suggest a confirmation of the SAH and stress the importance of considering the effects of worker moves between occupations in the study of trade-induced adjustment.
KW - Intra-industry trade
KW - Labour market adjustment
KW - Worker mobility
UR - http://www.scopus.com/inward/record.url?scp=33749455069&partnerID=8YFLogxK
U2 - 10.1007/s10290-006-0078-4
DO - 10.1007/s10290-006-0078-4
M3 - Article
AN - SCOPUS:33749455069
SN - 1610-2878
VL - 142
SP - 496
EP - 520
JO - Review of World Economics
JF - Review of World Economics
IS - 3
ER -
