Relative Prices, Trade and Restructuring in European Industry

34 Pages Posted: 13 Feb 2001

See all articles by Damien J. Neven

Damien J. Neven

University of Geneva; Centre for Economic Policy Research (CEPR)

Charles Wyplosz

University of Geneva - Graduate Institute of International Studies (HEI); Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 2 versions of this paper

Date Written: August 1996

Abstract

This paper explores the link between trade and European labour markets by using evidence on relative commodity prices and intra-sectoral skill levels at the NACE three-digit level for the four large EC countries and for the period 1976?90. We find that if the relative import prices of unskilled labour intensive sectors have not fallen significantly over time, substantial and varied restructuring is observed in those sectors. Defensive restructuring, involving upgrading of skills and expansion, is about as common as the contraction of employment and wages predicted by the Hecksher-Ohlin principle.

Keywords: European labour markets, trade

JEL Classification: F02, F11, J30

Suggested Citation

Neven, Damien J. and Wyplosz, Charles, Relative Prices, Trade and Restructuring in European Industry (August 1996). Available at SSRN: https://ssrn.com/abstract=291180

Damien J. Neven (Contact Author)

University of Geneva ( email )

Graduate Institute of International Studies
CH-1211 Geneve 4
Switzerland

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Charles Wyplosz

University of Geneva - Graduate Institute of International Studies (HEI) ( email )

PO Box 136
Geneva, CH-1211
Switzerland
+41 22 908 5946 (Phone)
+41 22 733 3049 (Fax)

HOME PAGE: http://heiwww.unige.ch/~wyplosz

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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