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Trade, Job Destruction and Job Creation in European Manufacturing

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  • Chiara Bentivogli
  • Patrizio Pagano

Abstract

This paper examines the effects of international trade with the newly industrialized Asian economies on the labor markets of Germany, France, Italy and the United Kingdom. The analysis confirms that, despite the growing importance of this trade, the problems of the European labor market can hardly be explained by the increase in imports of manufactures from the Nies. While job destruction appears completely independent from the trade flows with the emerging Asian economies, the evidence on job creation is less clear cut. In two cases imports appear to have depressed employment dynamics, but in another exports turn out to have stimulated it. The most striking evidence is on sector-specific features and individual characteristics, such as sector of (last) employment, sex and education: these variables appear to be much more important than trade in explaining individuals' positions in the labor market. Copyright Kluwer Academic Publishers 1999

Suggested Citation

  • Chiara Bentivogli & Patrizio Pagano, 1999. "Trade, Job Destruction and Job Creation in European Manufacturing," Open Economies Review, Springer, vol. 10(2), pages 165-184, May.
  • Handle: RePEc:kap:openec:v:10:y:1999:i:2:p:165-184 DOI: 10.1023/A:1008352920045
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    References listed on IDEAS

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    Cited by:

    1. Carrère, Céline & Fugazza, Marco & Olarreaga, Marcelo & Robert-Nicoud, Frédéric, 2016. "On the heterogeneous effect of trade on unemployment," CEPR Discussion Papers 11540, C.E.P.R. Discussion Papers.
    2. Novella Bottini & Michael Gasiorek, 2009. "Trade and Job Reallocation: Evidence for Morocco," LIUC Papers in Economics 224, Cattaneo University (LIUC).
    3. Vergara, Sebastián, 2005. "The dynamic of employment in Chilean industry," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    4. Haltiwanger, John & Kugler, Adriana & Kugler, Maurice & Micco, Alejandro & Pagés, Carmen, 2004. "Effects of tariffs and real exchange rates on job reallocation: evidence from Latin America," Discussion Paper Series In Economics And Econometrics 0410, Economics Division, School of Social Sciences, University of Southampton.
    5. Bacchetta, Marc & Jansen, Marion, 2003. "Adjusting to trade liberalization: The role of policy, institutions and WTO Disciplines," WTO Special Studies, World Trade Organization (WTO), Economic Research and Statistics Division, volume 7, number 7.
    6. Carsten Ochsen, 2006. "Zukunft der Arbeit und Arbeit der Zukunft in Deutschland," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 7(2), pages 173-193, May.
    7. Tyrowicz, Joanna, 2009. "When Eastern Labour Markets Enter Western Europe CEECs. Labour Market Institutions upon Euro Zone Accession," MPRA Paper 15045, University Library of Munich, Germany.
    8. Bernard Hoekman & Alan L. Winters, 2005. "Trade and Employment: Stylized Facts and Research Findings," Working Papers 7, United Nations, Department of Economics and Social Affairs.
    9. John Haltiwanger & Adriana Kugler & Maurice Kugler & Alejandro Micco & Carmen Pages, 2004. "Effects of tariffs and real exchange rates on job reallocation: evidence from Latin America," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 7(4), pages 191-208.
    10. Lars Calmfors & Giancarlo Corsetti & Michael P. Devereux & Gilles Saint-Paul & Hans-Werner Sinn & Jan-Egbert Sturm & Xavier Vives, 2008. "Chapter 3: The effect of globalisation on Western European jobs: curse or blessing?," EEAG Report on the European Economy, CESifo Group Munich, vol. 0, pages 71-104, February.
    11. Spinesi Luca, 2011. "Probabilistic Heterogeneous Patent Protection and Innovation Incentives," The B.E. Journal of Economic Analysis & Policy, De Gruyter, pages 1-44.
    12. Lurweg, Maren & Uhde, Nicole, 2010. "International trade and individual labour market perspectives: A micro-level analysis of German manufacturing workers," CAWM Discussion Papers 31, University of Münster, Center of Applied Economic Research Münster (CAWM).
    13. Joanna Tyrowicz, 2009. "When Eastern Labour Markets Enter Western Europe. CEECs Labour Market Institutions upon Euro Zone Accession," NBP Working Papers 61, Narodowy Bank Polski, Economic Research Department.
    14. Michael W. Klein & Scott Schuh & Robert K. Triest, 2002. "Job creation, job destruction, and international competition: a literature review," Working Papers 02-7, Federal Reserve Bank of Boston.

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    Keywords

    European labor markets; trade;

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