Trade liberalisation, rent sharing and wage inequality in Tunisia, 1998-2002
AbstractThis paper attempts to empirically explore the effects of trade liberalization process in Tunisia on average real wages and wage inequality, via industry rents. For this purpose, we adopt, following Revenga (1997), a flexible model of wage setting that can accommodate both the presence of rent-sharing behavior and competitive wage determination. The rent- sharing mechanism may affect firms’ employment response to trade liberalization. Indeed, bargaining workers could accept a reduction in wages subsequent to rent dissipation in order to preserve jobs. We assess this hypothesis by regressing a labor demand function derived from a model of employment determination that integrates trade impacts, following Mouelhi (2007).
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Bibliographic InfoPaper provided by Université Paris-Dauphine in its series Open Access publications from Université Paris-Dauphine with number urn:hdl:123456789/5843.
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Tunisia; North Africa; labor demand; unskilled workers; skilled workers; rent sharing; trade openness;
Find related papers by JEL classification:
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
- E23 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Production
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
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