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Trade and Employment: Stylized Facts and Research Findings

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  • Bernard Hoekman
  • Alan L. Winters

Abstract

The substantial literature investigating the links between trade, trade policy, and labour market outcomes has generated a number of stylized facts, but many open questions remain. A common finding is that much of the shorter-run impacts of trade and reforms involve reallocation of labour or wage impacts within sectors. Wage responses to trade and trade reforms are generally greater than employment impacts, but trade can only explain a small fraction of the general increase in wage inequality observed in recent decades. A priority area for future research is to study the employment effects of services trade and investment reforms.

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Bibliographic Info

Paper provided by United Nations, Department of Economics and Social Affairs in its series Working Papers with number 7.

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Length: 25 pages
Date of creation: Nov 2005
Date of revision:
Handle: RePEc:une:wpaper:7

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Keywords: trade liberalization; labour markets; trade and wages; trade and employment;

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Cited by:
  1. Frank Butter & Jan Möhlmann & Paul Wit, 2008. "Trade and product innovations as sources for productivity increases: an empirical analysis," Journal of Productivity Analysis, Springer, vol. 30(3), pages 201-211, December.
  2. Philip Du Caju & François Rycx & Ilan Tojerow, 2011. "Wage Structure Effects of International Trade: Evidence from a Small Open Economy," Working Papers CEB 11-011, ULB -- Universite Libre de Bruxelles.
  3. Lurweg, Maren & Westermeier, Andreas, 2010. "Jobs gained and lost through trade: The case of Germany," Center for European, Governance and Economic Development Research Discussion Papers 95, University of Goettingen, Department of Economics.
  4. Jansen, Marion, 2006. "Services Trade Liberalization at the Regional Level: Does Southern and Eastern Africa Stand to Gain from EPA Negotiations?," CEPR Discussion Papers 5800, C.E.P.R. Discussion Papers.
  5. Lurweg, Maren & Westermeier, Andreas, 2010. "Jobs gained and lost through trade: The case of Germany," Center for European, Governance and Economic Development Research Discussion Papers 95, University of Goettingen, Department of Economics.
  6. Hiebert, Paul & Vansteenkiste, Isabel, 2007. "International trade, technological shocks and spillovers in the labour market: A GVAR analysis of the US manufacturing sector," Working Paper Series 0731, European Central Bank.
  7. Pamela Coke Hamilton & Yvonne Tsikata & Emmanuel Pinto Moreira, 2009. "Accelerating Trade and Integration in the Caribbean : Policy Options for Sustained Growth, Job Creation, and Poverty Reduction," World Bank Publications, The World Bank, number 2652, October.
  8. Philip Du Caju & François Rycx & Ilan Tojerow, 2012. "Wage structure effects of international trade in a small open economy: The case of Belgium," ULB Institutional Repository 2013/138896, ULB -- Universite Libre de Bruxelles.
  9. Ghazali, Monia, 2010. "Trade liberalisation, rent sharing and wage inequality in Tunisia, 1998-2002," Economics Papers from University Paris Dauphine 123456789/5843, Paris Dauphine University.
  10. Persyn, Damiaan, 2008. "Trade as a Wage Disciplining Device," IZA Discussion Papers 3786, Institute for the Study of Labor (IZA).
  11. Aldaba, Rafaelita M., 2013. "Impact of Trade Liberalization on Wage Skill Premium in Philippine Manufacturing," Discussion Papers DP 2013-25, Philippine Institute for Development Studies.
  12. Rosario Cervantes & Gerardo Fujii, 2012. "T he Mexican trade liberalization process and its net effects on employment: 1988-2004," EconoQuantum, Revista de Economia y Negocios, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 9(2), pages 81-97, Julio-Dic.
  13. Said, Mona & Elshennawy, Abeer, 2010. "The impact of trade liberalization on manufacturing employment and wages in Egypt 1990-2007," MPRA Paper 25759, University Library of Munich, Germany.

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