Advanced Search
MyIDEAS: Login to save this paper or follow this series

Trade liberalization and demand labor elasticities : evidence from Tunisia

Contents:

Author Info

  • Ilham Haouas

    (TEAM, Université Paris I)

  • Mahmoud Yagoubi

    (MATISSE, Université Paris I)

Registered author(s):

    Abstract

    Ce papier étudie les effets de la libéralisation des échanges sur les élasticités de la demande du travail. Une équation de demande d'emploi est estimée en se fondant sur des données (1971-1996) portant sur six industries manufacturières tunisiennes. Les résultats des tests économétriques ne vérifient pas l'idée que la libéralisation des échanges peut permettre une augmentation de l'élasticité de la demande du travail. Dans la majorité des industries considérées, l'hypothèse de l'absence d'une relation entre l'ouverture commerciale et l'élasticité demande de travail ne peut pas être rejetée. La faiblesse de l'élasticité de demande de travail peut être expliquée par les régulations du marché du travail mises en place durant 1987-1996. Cependant, les résultats sont robustes par rapport au type de statut du travail considéré (main-d'oeuvre contractuelle et permanente). Ces résultats confortent l'idée qu'au cours de la période de libéralisation, le marché du travail est devenu plus flexible, et que les chefs d'entreprise préfèrent embaucher des travailleurs contractuels. This paper investigates the effects of trade liberalization on labor demand elasticities. Employment demand equation is estimated by using data (1971-1996) for manufacturing industries in Tunisia. Results from empirical testing using the model find a weak support for the idea assuming that trade liberalization will lead to an increase in labor demand elasticities: in the vast majority of the industries we consider, we cannot reject the hypothesis of no relationship between trade openness and labor-demand elasticities. This weakness of labor demand elasticity in practice is perhaps explained by the tight labor market regulations in place during the 1987-96. However, our results are robust to the type of labor considered (contract labor and permanent labor). This supports the conclusion that under liberalization period labor markets have become more flexible, and that employers prefer recruiting contracts worker. (Full text in english)

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://ged.u-bordeaux4.fr/ceddt94.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV in its series Documents de travail with number 94.

    as in new window
    Length: 10 pages
    Date of creation: Feb 2004
    Date of revision:
    Handle: RePEc:mon:ceddtr:94

    Contact details of provider:

    Related research

    Keywords:

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Haouas, Ilham & Yagoubi, Mahmoud & Heshmati, Almas, 2003. "The Impacts of Trade Liberalization on Employment and Wages in Tunisian Industries," IZA Discussion Papers 688, Institute for the Study of Labor (IZA).
    2. Luca Papi & Alberto Zazzaro, 2000. "How Does the EU Agenda Influence Economies outside the EU? The Case of Tunisia," Development Working Papers 148, Centro Studi Luca d\'Agliano, University of Milano.
    3. Beyer, Harald & Rojas, Patricio & Vergara, Rodrigo, 1999. "Trade liberalization and wage inequality," Journal of Development Economics, Elsevier, vol. 59(1), pages 103-123, June.
    4. Matthew J. Slaughter, 1997. "International Trade and Labor-Demand Elasticities," NBER Working Papers 6262, National Bureau of Economic Research, Inc.
    5. Brecher, Richard A, 1974. "Minimum Wage Rates and the Pure Theory of International Trade," The Quarterly Journal of Economics, MIT Press, vol. 88(1), pages 98-116, February.
    6. Rana Hasan & Devashish Mitra & K.V. Ramaswamy, 2007. "Trade Reforms, Labor Regulations, and Labor-Demand Elasticities: Empirical Evidence from India," The Review of Economics and Statistics, MIT Press, vol. 89(3), pages 466-481, August.
    7. Krishna, Pravin & Mitra, Devashish & Chinoy, Sajjid, 2001. "Trade liberalization and labor demand elasticities: evidence from Turkey," Journal of International Economics, Elsevier, vol. 55(2), pages 391-409, December.
    8. Fajnzylber, Pablo & Maloney, William F., 2000. "Labor demand andtrade reform in Latin America," Policy Research Working Paper Series 2491, The World Bank.
    9. Ilham Haouas & Mahmoud Yagoubi & Almas Heshmati, 2003. "Labour-Use Efficiency in the Tunisian's Manufacturing Industries: A Flexible Adjustment Model," Documents de travail 79, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.
    10. Uma Karmbhampati & Pravin Krishna & Devashish Mitra, 1997. "The effect of trade policy reforms on labour markets: evidence from India," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 6(2), pages 287-297.
    11. Robert C. Feenstra & Gordon H. Hanson, 1996. "Globalization, Outsourcing, and Wage Inequality," NBER Working Papers 5424, National Bureau of Economic Research, Inc.
    12. Levinsohn, James, 1999. "Employment responses to international liberalization in Chile," Journal of International Economics, Elsevier, vol. 47(2), pages 321-344, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:mon:ceddtr:94. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.