Scandinavian Working Papers in Economics

Working Paper Series, Center for Labor Studies,
Uppsala University, Department of Economics

No 2010:17: Jobs and Exposure to International Trade within the Service Sector in Sweden

Kent Eliasson (), Pär Hansson () and Markus Lindvert ()
Additional contact information
Kent Eliasson: Growth Analysis, Postal: Studentplan 3, SE-831 40 Östersund, Sweden
Pär Hansson: Uppsala Center for Labor Studies, Postal: Department of Economics, Uppsala University, P.O. Box 513, SE-751 20 Uppsala, Sweden
Markus Lindvert: Growth Analysis, Postal: Studentplan 3, SE-831 40 Östersund, Sweden

Abstract: The service sector is very heterogeneous with respect to internationalization; in some industries there is international trade (or it may potentially exist), whereas other industries are non-tradable. Data on international trade in services is, however, typically very limited, making it difficult to identify in which industries there are international trade. In this paper, we partially surmount the problems with insufficient service trade statistics by calculating locational Ginis for different industries in the private business sector as well as in the public sector. The basic idea is that from the regional concentration of different activities within a country one can identify industries where there appears to be regional trade, and hence also a potential for international trade. Based on our method we find that the number of employed in tradable service appears to be at least as large as in the manufacturing sector. Remarkably, a larger share of the skilled labor exposed to international trade is working in the service sector than in manufacturing, while a majority of the less skilled labor working in tradable industries is employed in manufacturing. When it comes to employment growth, we observe that the employment has increased in tradable service, while it has fallen in the manufacturing sector (the whole sector is regarded as tradable).

Keywords: jobs; service trade; regional concentration; structural change

JEL-codes: F16; J44; R12

34 pages, October 10, 2010

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