Inter-Industry Labor Mobility and Lobbying for Trade Protection

Hak-Seon Lee

The International Trade Journal, 2018, vol. 32, issue 2, 167-188

Abstract: This article investigates how inter-industry labor mobility affects industry lobbying for trade protection when foreign multinationals increase production and sales in the U.S. The level of inter-industry labor mobility is a critical issue to an industry because investment-receiving sectors draw labor from the rest of the economy, thus reducing the supply or increasing the price of labor available to an industry. I hypothesize that sectors employing less sector-specific labor will be more likely to lobby for trade protection when investment-receiving sectors draw labor to expand production, ceteris paribus. An empirical test confirms my hypothesis.

Date: 2018
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DOI: 10.1080/08853908.2017.1295888

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