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Labor Market Effects of Trade and FDI: Recent Advances and Research Gaps

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Author Info

  • Pflüger, Michael P.

    ()
    (University of Würzburg)

  • Blien, Uwe

    ()
    (Institute for Employment Research (IAB), Nuremberg)

  • Möller, Joachim

    ()
    (Institute for Employment Research (IAB), Nuremberg)

  • Moritz, Michael

    ()
    (Institute for Employment Research (IAB), Nuremberg)

Abstract

This paper pursues three aims. First, we provide a review of current theoretical advances which pertain to the relationship between trade, FDI and labor markets. We do so under the following (not mutually exclusive) headings: (1) slicing-up the value added chain and the turn to a task-based approach, (2) firm heterogeneity and labor markets, (3) complex offshoring (integration) and sourcing strategies and (4) location of firms and labor markets. Second, we overview existing empirical work covering the labor market effects of trade and FDI. Finally, we identify and summarize the existing research gaps and thereby we highlight promising avenues for future research.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5385.

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Length: 35 pages
Date of creation: Dec 2010
Date of revision:
Handle: RePEc:iza:izadps:dp5385

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Related research

Keywords: FDI; trade; labor markets; agglomeration; outsourcing; offshoring;

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References

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  1. Karolina Ekholm & Rikard Forslid & James Markusen, 2003. "Export-Platform Foreign Direct Investment," NBER Working Papers 9517, National Bureau of Economic Research, Inc.
  2. Thiess Buettner & Johannes Rincke, 2007. "Labor Market Effects of Economic Integration: The Impact of Re-Unification in German Border Regions," German Economic Review, Verein für Socialpolitik, Verein für Socialpolitik, vol. 8, pages 536-560, November.
  3. Alexandra Spitz-Oener, 2006. "Technical Change, Job Tasks, and Rising Educational Demands: Looking outside the Wage Structure," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 24(2), pages 235-270, April.
  4. Crozet, Matthieu & Brülhart, Marius & Koenig, Pamina, 2004. "Enlargement and the EU Periphery : The Impact of Changing Market Potential," HWWA Discussion Papers 270, Hamburg Institute of International Economics (HWWA).
  5. Munich, Daniel & Svejnar, Jan & Terrell, Katherine, 2005. "Is women's human capital valued more by markets than by planners?," Journal of Comparative Economics, Elsevier, vol. 33(2), pages 278-299, June.
  6. Kamil Galušèák & Daniel Münich, 2005. "Regional Wage Adjustments and Unemployment: Estimating the Time-Varying Wage Curve (in English)," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, Charles University Prague, Faculty of Social Sciences, vol. 55(1-2), pages 68-82, January.
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Cited by:
  1. Ulrich Zierahn, 2012. "The effect of market access on the labor market: Evidence from German reunification," MAGKS Papers on Economics, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung) 201239, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  2. Hecht, Veronika & Hohmeyer, Katrin & Litzel, Nicole & Moritz, Michael & Müller, Jo-Ann & Phan thi Hong, Van & Schäffler, Johannes, 2013. "Motive, Strukturen und Auswirkungen deutscher Direktinvestitionen in Tschechien : erste Untersuchungsergebnisse aus dem IAB-Projekt ReLOC - Research on Locational and Organisational Change," IAB-Forschungsbericht, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] 201301, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  3. Hecht, Veronika & Litzel, Nicole & Schäffler, Johannes, 2013. "The ReLOC project : method report for implementing a cross-border company survey in Germany and the Czech Republic," IAB-Forschungsbericht, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] 201304, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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