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Labour-Market Effects of Intra-Industry Trade: Evidence for the United Kingdom
Review of World Economics (2002)
  • Marius Brulhart
  • Robert J.R. Elliott, University of Birmingham

According to the “smooth adjustment hypothesis”, the labour-market adjustment costs entailed by trade liberalisation are lower if trade expansion is intra-industry rather than inter-industry in nature. In this paper, we study the link between trade and labour 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.

  • intra-industry trade,
  • labour market adjustment
Publication Date
July, 2002
Citation Information
Marius Brulhart and Robert J.R. Elliott. "Labour-Market Effects of Intra-Industry Trade: Evidence for the United Kingdom" Review of World Economics Vol. 138 Iss. 3 (2002)
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