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Abstract:

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CentrePiece Article
Trade and deskilling: how the post-referendum sterling depreciation hurt workers
Rui Costa, Swati Dhingra and Stephen Machin
July 2019
Paper No' CEPCP551:
Full Paper (pdf)

CentrePiece 24 (2) Summer 2019


JEL Classification: F14; F31; F66; J24; J31


Tags: international trade; worker outcomes; wages; productivity; skills; real wage stagnation

The unexpected result of the Brexit referendum, working through the rapid depreciation of sterling, had a sizable negative impact on UK workers. New CEP work by Rui Costa, Swati Dhingra and Stephen Machin shows that the big drop in the value of the pound caused a rise in import prices, which has led to a fall in both wages and training for employees in the most heavily hit sectors.

This article summarises 'Trade and Worker Deskilling' by Rui Costa, Swati Dhingra and Stephen Machin, CEP Discussion Paper No. 1622