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Labor Market Effects of Trade and FDI – Recent Advances and Research Gaps

  • Pflüger Michael

    ()

    (Faculty of Economics, University of Passau, Innstrasse 27, 94032 Passau, Germany)

  • Blien Uwe

    ()

  • Moritz Michael

    ()

    (IAB Nürnberg, Regensburger Straße 104, 90478 Nürnberg, Germany)

  • Möller Joachim

    ()

    (Faculty of Economics, University of Regensburg, 93040 Regensburg, Germany)

The last decade has been shaped by dramatic developments in international trade, international investment and production, both in terms of the scale of events and in terms of their qualitative nature. Intriguing questions have been thrown up concerning the labor market impact of these developments, notably welfare issues (the evolution of real wages, employment and unemployment), the distribution of income (the wage structure) and employment volatility. Path-breaking innovations in the theories of trade, location and the multinational firm allow a fresh look at these labor market effects. This paper takes stock of these theoretical innovations and contrasts these with the recent empirical research efforts to uncover the labor market implications of trade and FDI. We identify research gaps and highlight promising avenues for future research.

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Article provided by De Gruyter in its journal Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik).

Volume (Year): 233 (2013)
Issue (Month): 1 (February)
Pages: 86-116

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Handle: RePEc:jns:jbstat:v:233:y:2013:i:1:p:86-116
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