Intra-Industry Trade and Labour-Market Adjustment: A Reassessment Using Data on Individual Workers |
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| Authors: | Marius Brülhart Robert J R Elliott Joanne Lindley |
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| Institution: | (1) Département d’économétrie et économie politique (DEEP), HEC, University of Lausanne, 1015 Lausanne, Switzerland;(2) University of Birmingham, Birmingham, United Kingdom;(3) University of Sheffield, Sheffield, United Kingdom |
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| Abstract: | We re-examine the relationship between intra-industry trade and labour reallocation, using individual-level data on manufacturing
worker moves in the United Kingdom. The contribution of this analysis is twofold. First, we estimate the impact of intra-industry
trade on worker moves between occupations as well as between industries. Second, we run individual-level regressions that
allow us to control for worker heterogeneity. Our results suggest that intra-industry trade does have the stipulated attenuating
effect on worker moves, both between occupations and between industries, but that this effect is relatively small compared
to other determinants of labour reallocation.
JEL no. F1, J62, C25 |
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| Keywords: | Intra-industry trade worker mobility labour-market adjustment |
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