This paper estimates workers’ intersectoral switching costs based on a dynamic model of labor adjustment using data for Argentina (1996-2009). The estimated parameters are incorporated into a neoclassical model of trade to simulate the dynamic equilibrium impact (on welfare, wages and labor allocation) of trade shocks and technological changes. The approach used in this paper follows the method developed in Artuç, Chaudhuri and McLaren (2010). Our estimates show that Argentinian workers face high average intersectoral adjustment costs. This result suggests that the adjustment of the labor market in response to shocks is slow.