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Trade liberalisation and the Demand for Skilled Labour in Australia

Author

Listed:
  • G. Meagher

    (Monash University)

  • P.D. Adams

    (Monash University)

Abstract

Among the more widely accepted stylised facts about economic development in Australia during the 1990s are that the domestic economy became more closely integrated into the world economy, that trade liberalisation made an important contribution to the process of globalisation, and that skilled workers increased their share of employment at the expense of the unskilled. This paper examines the nature of the perceived skill bias in employment growth and considers the extent to which it can be attributed to trade liberalisation. The analysis is based on a simulation of the effects of the Asia Pacific Economic Cooperation (APEC) proposals using a ‘tops down’ combination of the GTAP model of world trade and the MONASH model of the Australian economy. It suggests that the stylised facts provide an inappropriate basis for future policy formulation.

Suggested Citation

  • G. Meagher & P.D. Adams, 2000. "Trade liberalisation and the Demand for Skilled Labour in Australia," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 4(4), pages 318-334, December.
    • Handle: RePEc:ozl:journl:v:4:y:2001:i:4:p:318-334
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    More about this item

    Keywords

    Computable general equilibrium models Commercial policy; protection; promotion; trade negotiations Employment determination; job creation; demand for labor; self-employment;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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