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The impact of trade on the relative wages and employment of low skill workers in France

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  • Stephen Bazen
  • Jean-Marie Cardebat

Abstract

The impact of international trade on labour markets in developed countries will be different according to the degree of competition in product markets, the flexibility of the labour market and the skill intensity of production. An econometric analysis of the impact of trade in France has been undertaken using sectoral data for the period 1985-p1992. It is found that lower relative import prices reduce the relative employment of low skill workers in the first half the period and reduce their relative wages in the second half. In both cases the effect is more pronounced in sectors where the skill intensity of production is initially low.

Suggested Citation

  • Stephen Bazen & Jean-Marie Cardebat, 2001. "The impact of trade on the relative wages and employment of low skill workers in France," Applied Economics, Taylor & Francis Journals, vol. 33(6), pages 801-810.
    • Handle: RePEc:taf:applec:v:33:y:2001:i:6:p:801-810
    DOI: 10.1080/00036840122774
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    References listed on IDEAS

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    1. Alan B. Krueger, 1997. "Labor Market Shifts and the Price Puzzle Revisited," NBER Working Papers 5924, National Bureau of Economic Research, Inc.
    2. repec:fth:prinin:375 is not listed on IDEAS
    3. Alan Krueger, 1997. "Labor Market Shifts and the Price Puzzle Revisited," Working Papers 754, Princeton University, Department of Economics, Industrial Relations Section..
    4. Damien NEVEN. & Charles WYPLOSZ, 1996. "Relative Prices, Trade and Restructuring in European Industry," Cahiers de Recherches Economiques du Département d'économie 9615, Université de Lausanne, Faculté des HEC, Département d’économie.
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    Cited by:

    1. Dhamija, Nidhi, 2019. "Trade Liberalization and Unemployment in India: A State Level Analysis," MPRA Paper 95001, University Library of Munich, Germany.
    2. repec:hal:spmain:info:hdl:2441/685 is not listed on IDEAS
    3. Guillaume Daudin & Sandrine Levasseur, 2005. "Délocalisations et concurrence des pays émergents : mesurer l'effet sur l'emploi en France," Revue de l'OFCE, Presses de Sciences-Po, vol. 94(3), pages 131-160.
    4. repec:hal:wpspec:info:hdl:2441/693 is not listed on IDEAS
    5. Marco de Pinto, 2012. "Unemployment Benefits as Redistribution Scheme of Trade Gains - a Positive Analysis," FIW Working Paper series 092, FIW.
    6. Marco Pinto & Jochen Michaelis, 2014. "International Trade and Unemployment—the Worker-selection Effect," Review of International Economics, Wiley Blackwell, vol. 22(2), pages 226-252, May.
    7. Jaimin Lee & Seong-Hoon Cho, 2017. "Free trade agreement and transport service trade," The World Economy, Wiley Blackwell, vol. 40(7), pages 1494-1512, July.
    8. Liu, Zhen & Ngo, Thanh Quang & Saydaliev, Hayot Berk & He, Huiyuan & Ali, Sajid, 2022. "How do trade openness, public expenditure and institutional performance affect unemployment in OIC countries? Evidence from the DCCE approach," Economic Systems, Elsevier, vol. 46(4).
    9. Marco de Pinto, 2012. "Unemployment Benefits as Redistribution Scheme of Trade Gains - a Positive Analysis," MAGKS Papers on Economics 201210, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    10. repec:spo:wpecon:info:hdl:2441/693 is not listed on IDEAS
    11. Guillaume Daudin & Sandrine Levasseur, 2005. "Appendix 8 : Measuring the effect of international relocations on French economy," SciencePo Working papers Main hal-01073900, HAL.
    12. repec:hal:spmain:info:hdl:2441/693 is not listed on IDEAS
    13. de Pinto, Marco, 2012. "Unemployment Benefits as Redistribution Scheme of Trade Gains - a Positive Analysis," VfS Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 66059, Verein für Socialpolitik / German Economic Association.
    14. Marco de Pinto, 2012. "Unemployment Benefits as Redistribution Scheme for Trade Gains - A Positive Analysis," IAAEU Discussion Papers 201204, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).

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