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| Author: | Lovely, M. E. Nelson, D. R. |
| Title: | Intra-Industry Trade as an Indicator of Labor Market Adjustment |
| Journal: | Weltwirtschaftliches Archiv
2002 : VOL. 138:2, p. 179-206 |
| Index terms: | INTRA-INDUSTRY TRADE LABOUR MARKETS ANALYTICAL REVIEW |
| Language: | eng |
| Abstract: | The relationship between international trade and labor markets has been a central concern of pamphleteers, politicians, and academics for virtually as long as "international trade" has been a coherent concept. The authors posit a model that reflects the literature's concern with short-run labor adjustment, and the authors use it to derive analytical expressions for MIIT and labor reallocation. The authors then compare these expressions to identify the conditions under which popular measures of (marginal) intra-industry trade are informative with respect to intra-versus inter-industry labor adjustment. The authors' results indicate the need to control for trade- induced changes in domestic demands, a feature that is absent from the existing literature. |
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