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The Impacts of Trade Liberalization on Employment and Wages in Tunisian Industries

Author

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  • Ilham Haouas
  • Mahmoud Yagoubi
  • Almas Heshmati

Abstract

This paper investigates short and long-run effects of trade liberalization on employment and wages. Employment and wage equations are estimated using data (1971-96) for importable and exportable sectors in Tunisia. Causality tests show that causality is unidirectional. Wages strongly causes employment but employment does not cause wages. There is significant difference in the direction of responses in the short and long-run. Results from empirical testing using the models find only support for the short-run theoretical predictions for the exportable sector.

Suggested Citation

  • Ilham Haouas & Mahmoud Yagoubi & Almas Heshmati, 2002. "The Impacts of Trade Liberalization on Employment and Wages in Tunisian Industries," WIDER Working Paper Series DP2002-102, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2002-102
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    References listed on IDEAS

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    Cited by:

    1. Justina A.V. Fischer, 2015. "Globalized Markets, Globalized Information, and Female Employment: Accounting for Regional Differences in 30 OECD Countries," AIEL Series in Labour Economics, in: Chiara Mussida & Francesco Pastore (ed.), Geographical Labor Market Imbalances. Recent Explanations and Cures, edition 1, chapter 13, pages Universit, AIEL - Associazione Italiana Economisti del Lavoro.
    2. Ilham Haouas & Almas Heshmati, 2015. "The Impact of Arab Spring on Hiring and Separation Rates in the Tunisian Labor Market," Working Papers 921, Economic Research Forum, revised Jun 2015.
    3. repec:ilo:ilowps:374452 is not listed on IDEAS
    4. Chama CHIPETA & Daniel Francois MEYER, 2018. "Trade Openness, FDI and Exchange Rate Effects on Job Creation in South Africa's Tradable Sectors," Journal of Economics and Behavioral Studies, AMH International, vol. 10(4), pages 197-212.
    5. Almas Heshmati & Ilham Haouas & Kazi Sohag & Muhammad Shahbaz, 2017. "Hiring and Separation Rates Before and after the Arab Spring in the Tunisian Labour Market," South African Journal of Economics, Economic Society of South Africa, vol. 85(2), pages 259-278, June.
    6. Ilham Haouas & Mahmoud Yagoubib, 2007. "The effect of international trade on labour-demand elasticities: empirical evidence from Tunisia," Applied Economics Letters, Taylor & Francis Journals, vol. 15(4), pages 277-286.
    7. A.I Achike & M. Mkpado & C.J. Arene, 2013. "Effects of Trade Liberalization and Exchange Rate Changes on Prices of Carbohydrate Staples in Nigeria," Working Papers 256, African Economic Research Consortium, Research Department.
    8. Haouas, Ilham & Yagoubi, Mahmoud, 2004. "Trade Liberalization and Labor-Demand Elasticities: Empirical Evidence from Tunisia," IZA Discussion Papers 1084, Institute of Labor Economics (IZA).
    9. Ngo, Thanh & Trinh, Hai Hong & Haouas, Ilham & Ullah, Subhan, 2022. "Examining the bidirectional nexus between financial development and green growth: International evidence through the roles of human capital and education expenditure," Resources Policy, Elsevier, vol. 79(C).
    10. Kyvik Nord°as, Hildegunn., 2005. "Labour implications of the textiles and clothing quota phase-out," ILO Working Papers 993744523402676, International Labour Organization.
    11. Ben Salha, Ousama, 2013. "Does economic globalization affect the level and volatility of labor demand by skill? New insights from the Tunisian manufacturing industries," Economic Systems, Elsevier, vol. 37(4), pages 572-597.
    12. Nordås, Hildegunn Kyvik, 2004. "Is trade liberalization a window of opportunity for women?," WTO Staff Working Papers ERSD-2003-03, World Trade Organization (WTO), Economic Research and Statistics Division.
    13. Ilham Haouas & Mahmoud Yagoubi, 2004. "Trade liberalization and demand labor elasticities : evidence from Tunisia," Documents de travail 94, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.

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    More about this item

    Keywords

    International trade; Labour market; Manufacturing; Women;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • F10 - International Economics - - Trade - - - General
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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