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The Impact of Trade and Foreign Direct Investment on Labour Markets: The French Case

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Author Info
Patrick A. Messerlin ()
Abstract

This paper studies whether the belief is justified that foreign trade and capital outflows have dramatically reduced the number of jobs available to French workers and are leading to a substantial decline in French wages, especially of low-skilled workers.

The link between trade and employment is examined first and reveals that world demand for French exports has been the driving force behind French economic growth. Taking developments in imports into account enables an estimate to be made of the net impact of foreign trade on employment. The impact on total employment is small but for individual industries the positive and negative effects can be substantial. As regards impact on wages, the study shows that skilled labour in exporting industries has benefited relatively to skilled labour in import-competing industries.

Inward and outward capital flows are small in relation to domestic gross investment for most sectors, especially for those where employment is declining. The flows ...

L’impact des échanges et de l’investissement direct étranger sur les marchés du travail : Le cas français

Ce document examine le bein-fondé de l’idée reçu suivant laquelle les échanges internationaux et les flux de capitaux ont réduit serieusement le nombre d’emplois à la disposition des travailleurs en France et sont en train de faire baisser les niveaux salariaux, surtout à l’encontre des travailleurs français moins qualifiés.

D’abord le rapport entre les échanges et l’emploi est étudiés et il est démontré que la demande internationale de produits français exportés a constitué l’élément moteur de la croissance économique française. Compte tenir de l’évolution des importations on est en état d’estimer l’effet net des échanges sur l’emploi. Au niveau global l’impacte sur l’emploi est limité mais pour certianes industries specifiques les effets négatifs ou positifs sont parfois substantiels. En ce qui concerne l’impact salarial, l’étude démontre que la main-d’oeuvre qualifiée dans les industries d’exportation a profité relativement à la maind’oeuvre qualifiée dans les industries en concurrence ...

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Paper provided by OECD Directorate for Employment, Labour and Social Affairs in its series OECD Jobs Study Working Papers with number 9.

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Date of creation: 1995
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Handle: RePEc:oec:elsaac:9-en

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