Weltwirtschaftliches Archiv

, Volume 138, Issue 2, pp 207–228 | Cite as

Labour-market effects of intra-industry trade: Evidence for the United Kingdom

  • Marius Brülhart
  • Robert J. R. Elliott

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.

F1 J6 

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© Institut fur Weltwirtschaft an der Universitat Kiel 2002

Authors and Affiliations

  • Marius Brülhart
  • Robert J. R. Elliott

There are no affiliations available

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