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Labor Markets in Regional Trade Agreements: What Do We Know ?

Author

Listed:
  • Jaime DE MELO

    () (Ferdi)

  • Julie REGOLO

    (FERDI)

Abstract

Globalization has failed to relax barriers to the movement of labor, especially unskilled workers. So have North-South Regional Trade Agreements (RTAs), while South-South RTAs have failed to implement good intentions. A literature review of the labor effects of RTAs underscores context specificity precluding generalizations across categories of RTAs. Most ex-ante studies have focused on global welfare effects rather than anticipated labor market effects while ex-post studies have had difficulty isolating any direct effects attributable to implementation of the RTA because of confounding effects as illustrated by a discussion of the wage puzzle in Mexico under NAFTA. The survey reviews labor market and wage results from ex-ante CGE estimates and ex-post household-based econometric estimates.

Suggested Citation

  • Jaime DE MELO & Julie REGOLO, 2013. "Labor Markets in Regional Trade Agreements: What Do We Know ?," Working Papers P69, FERDI.
  • Handle: RePEc:fdi:wpaper:428
    as

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    File URL: http://www.ferdi.fr/sites/www.ferdi.fr/files/publication/fichiers/WP69_deMelo%20et%20Regolo_WEB.pdf
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    References listed on IDEAS

    as
    1. Ayça Tekin-Koru & Andreas Waldkirch, 2010. "North-South Integration and the Location of Foreign Direct Investment," Review of International Economics, Wiley Blackwell, vol. 18(4), pages 696-713, September.
    2. Balistreri, Edward J. & Rutherford, Thomas F., 2013. "Computing General Equilibrium Theories of Monopolistic Competition and Heterogeneous Firms," Handbook of Computable General Equilibrium Modeling, Elsevier.
    3. Eugene Beaulieu, 2000. "The Canada-U.S. Free Trade Agreement and labour market adjustment in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 33(2), pages 540-563, May.
    4. Fernando Borraz & Máximo Rossi & Daniel Ferres, 2012. "Distributive Effects of Regional Trade Agreements on the ‘Small Trading Partners’: Mercosur and the Case of Uruguay and Paraguay," Journal of Development Studies, Taylor & Francis Journals, vol. 48(12), pages 1828-1843, December.
    5. Boeters, Stefan & Savard, Luc, 2011. "The labour market in CGE models," ZEW Discussion Papers 11-079, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    Full references (including those not matched with items on IDEAS)

    More about this item

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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