This paper tests the pro-competitive effect of trade in the product and labour markets of UK manufacturing sectors between 1988 and 2003 using a two-stage estimation procedure. In the first stage, we use data on 9820 firms from twenty manufacturing sectors to simultaneously estimate mark-up and...

Although four out of five manufacturing employees work in production occupations in most countries (as opposed to white collar occupations), there is little international evidence on how the transition to more capital intensive production methods has affected the demand for different groups of...