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Labour Force Growth, Trade, and Employment

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  • Francois, Joseph

Abstract

This paper examines the implications of labour force growth in one region for wages, employment, and production patterns in other regions. These issues are first explored in a stylized dual model incorporating features of both standard factor-based trade models and models of two-way trade and returns to specialization. Sufficient conditions for positive trade linkages between labour force growth in one region and real wage and employment erosion in another are derived. These conditions are then examined in the context of non-OECD labour force growth, through a multi-region, multi-sector numerical model of the world economy.

Suggested Citation

  • Francois, Joseph, 1994. "Labour Force Growth, Trade, and Employment," CEPR Discussion Papers 1069, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:1069
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    Citations

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    Cited by:

    1. J. David Richardson, 1995. "Income Inequality and Trade: How to Think, What to Conclude," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 33-55, Summer.

    More about this item

    Keywords

    Demographics; Employment; Modelling; Trade;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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