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Trade Liberalization and Labour Markets: Perspective from OECD Economies

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Author Info

  • Michael Landesmann

    ()
    (The Vienna Institute for International Economic Studies, wiiw)

  • Sebastian Leitner

    ()
    (The Vienna Institute for International Economic Studies, wiiw)

  • Robert Stehrer

    ()
    (The Vienna Institute for International Economic Studies, wiiw)

Abstract

This study looks at the relationship between trade integration and labour markets for a group of OECD economies (USA, Japan, France, Germany, Netherlands, Sweden, United Kingdom). We examine particularly trade relationships between these OECD economies and different groups of 'Southern' economies Southern Europe, the advanced South East Asian economies, a larger group of developing and catching-up economies, and transition countries from Central and Eastern Europe. The analysis uses a disaggregated data-set comprising 23 manufacturing industries for which production, employment and trade statistics were compiled. It looks at the differentiated pattern of trade integration over the period 1980-96 and examines labour market effects (on employment and on wages) both at a descriptive level and by means of econometric analysis. Evidence for trade effects on labour market variables is found, although the pattern of trade integration proceeds quite differently from what a Heckscher-Ohlin framework would expect. The pattern is much more compatible with a dynamic Ricardian model with catching-up features.

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Bibliographic Info

Paper provided by The Vienna Institute for International Economic Studies, wiiw in its series wiiw Working Papers with number 20.

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Date of creation: Oct 2001
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Publication status: Published as wiiw Working Paper
Handle: RePEc:wii:wpaper:20

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Related research

Keywords: trade liberalization; labour markets; OECD economies; North-South trade;

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Cited by:
  1. Arslan Razmi & Robert Blecker, 2008. "Developing Country Exports of Manufactures: Moving Up the Ladder to Escape the Fallacy of Composition?," Journal of Development Studies, Taylor & Francis Journals, vol. 44(1), pages 21-48.
  2. Lihong Yun, 2008. "Technical Progress and Labour Demand in Swedish Manufacturing Firms," Journal of Industry, Competition and Trade, Springer, vol. 8(2), pages 147-167, June.
  3. Martin Falk & Yvonne Wolfmayr, 2005. "Employment Effects of Outsourcing to Low Wage Countries. Empirical Evidence for EU Countries," WIFO Working Papers 262, WIFO.
  4. Özlem Onaran, 2008. "The effect of import penetration on labor market outcomes in Austrian manufacturing industry," Department of Economics Working Papers wuwp119, Vienna University of Economics, Department of Economics.

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