Inter-Industry Labor Mobility and Lobbying for Trade Protection

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 lab...

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Bibliographic Details
Published in:The International trade journal 2018-03, Vol.32 (2), p.167-188
Main Author: Lee, Hak-Seon
Format: Article
Language:English
Subjects:
Economic models
Foreign direct investment
Industrial production
industry lobbying
International trade
Investments
labor mobility
Lobbying
Multinational corporations
Occupational mobility
Prices
Protectionism
Sales
Trade
trade politics
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Summary: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.
ISSN:0885-3908
1521-0545
DOI:10.1080/08853908.2017.1295888