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According to the “smooth adjustment hypothesis”, the labor market adjustment costs entailed by trade liberalization are lower if trade expansion is intra industry rather inter industry in nature. In this paper, we study the link between trade and labor-market changes in France over the period 1986-2011. The empirical survey, uses a panel data models with fixed effects, it showes a negative correlation between changes of employment and marginal intra-industry trade. These results confirm the smooth adjustment hypothesis. The mesure of marginal IIT is then found to be more appropriate for the analysis of adjustment issues than the traditional static IIT index.
Dr. Hatem Derbel. 2013. \u201cIntra-industry Trade and Labour Market Adjustment in France\u201d. Global Journal of Human-Social Science - E: Economics GJHSS-E Volume 13 (GJHSS Volume 13 Issue E4): .
Crossref Journal DOI 10.17406/GJHSS
Print ISSN 0975-587X
e-ISSN 2249-460X
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Total Score: 133
Country: France
Subject: Global Journal of Human-Social Science - E: Economics
Authors: Hatem Derbel, Neila Dammak, Ali Chkir (PhD/Dr. count: 0)
View Count (all-time): 142
Total Views (Real + Logic): 4902
Total Downloads (simulated): 2515
Publish Date: 2013 09, Thu
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According to the “smooth adjustment hypothesis”, the labor market adjustment costs entailed by trade liberalization are lower if trade expansion is intra industry rather inter industry in nature. In this paper, we study the link between trade and labor-market changes in France over the period 1986-2011. The empirical survey, uses a panel data models with fixed effects, it showes a negative correlation between changes of employment and marginal intra-industry trade. These results confirm the smooth adjustment hypothesis. The mesure of marginal IIT is then found to be more appropriate for the analysis of adjustment issues than the traditional static IIT index.
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