Are workers more vulnerable in tradable industries?

Kent Eliasson () and Pär Hansson ()
Additional contact information
Kent Eliasson: Growth Analysis and Department of Economics, Umeå University, Postal: SE-901 87 Umeå

No 2013:16, Working Paper Series, Center for Labor Studies from Uppsala University, Department of Economics

Abstract: Reduced trade barriers and lower costs of transportation and information have meant that a growing part of the economy has been exposed to international trade. In particular, this is the case in the service sector. We divide the service sector into a tradable and a non-tradable part using an approach to identify tradable industries developed by Jensen and Kletzer (2006). We examine whether the probability of displacement is higher and income losses after displacement greater for workers in tradable services and manufacturing (tradable) than in non-tradable services. We also analyze whether the probability of re-employment is higher for workers displaced from tradable services and manufacturing than from non-tradable services. We find that in the 2000s the probability of displacement is relatively high in tradable services in comparison to non-tradable services and manufacturing. On the other hand, the probability of re-employment is higher for those displaced from tradable services. The largest income losses are found for those who had been displaced from manufacturing. Interestingly, the income losses of those displaced from manufacturing seems mainly to be due to longer spells of non-employment, whereas for those displaced in tradable services lower wages in their new jobs compared to their pre-displacement jobs appears to play a larger role.

Keywords: displacement COSTs; re-employment; earnings losses; tradable services (search for similar items in EconPapers)
JEL-codes: F16 F63 J62 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2013-12-09
New Economics Papers: this item is included in nep-int and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.ucls.nek.uu.se/digitalAssets/207/207672_201316.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.ucls.nek.uu.se/digitalAssets/207/207672_201316.pdf [301 Moved Permanently]--> https://www.ucls.nek.uu.se/digitalAssets/207/207672_201316.pdf [301 Moved Permanently]--> https://www.uu.se/institution/nationalekonomiska/forskning/forskningscentrum/uppsala-center-for-labor-studies/digitalAssets/207/207672_201316.pdf)

Related works:
Journal Article: Are workers more vulnerable in tradable industries? (2016)
Working Paper: Are workers more vulnerable in tradable industries? (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:uulswp:2013_016

Access Statistics for this paper

More papers in Working Paper Series, Center for Labor Studies from Uppsala University, Department of Economics Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Katarina Grönvall ( this e-mail address is bad, please contact ).