Intra-Industry Trade and Labor Market Adjustment in Taiwan

Chih-Hai Yang and Ming-Huan Liou

Emerging Markets Finance and Trade, 2013, vol. 49, issue S2, 126-144

Abstract: This paper investigates the relationship between intra-industry trade (IIT) expansion and labor market adjustment in Taiwan. We adopt a panel data set containing detailed employment information and utilize various measures of labor market adjustment to conduct empirical estimations. After controlling for industry-specific effects and occupational composition, the empirical results demonstrate that IIT expansion does have a smoothing effect on labor market adjustment. Moreover, industries with abundant skilled workers experience lower employment adjustment costs.

Keywords: intra-industry trade; labor adjustment; occupational composition (search for similar items in EconPapers)
Date: 2013
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