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

  • Pflüger, Michael P.

    ()

    (University of Würzburg)

  • Blien, Uwe

    ()

    (Institute for Employment Research (IAB), Nuremberg)

  • Möller, Joachim

    ()

    (Institute for Employment Research (IAB), Nuremberg)

  • Moritz, Michael

    ()

    (Institute for Employment Research (IAB), Nuremberg)

This paper pursues three aims. First, we provide a review of current theoretical advances which pertain to the relationship between trade, FDI and labor markets. We do so under the following (not mutually exclusive) headings: (1) slicing-up the value added chain and the turn to a task-based approach, (2) firm heterogeneity and labor markets, (3) complex offshoring (integration) and sourcing strategies and (4) location of firms and labor markets. Second, we overview existing empirical work covering the labor market effects of trade and FDI. Finally, we identify and summarize the existing research gaps and thereby we highlight promising avenues for future research.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5385.

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Length: 35 pages
Date of creation: Dec 2010
Date of revision:
Handle: RePEc:iza:izadps:dp5385
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  1. Karolina Ekholm & Rikard Forslid & James Markusen, 2003. "Export-Platform Foreign Direct Investment," NBER Working Papers 9517, National Bureau of Economic Research, Inc.
  2. Marius BRÜLHART & Matthieu CROZET & Pamina KOENIG, 2004. "Enlargement and the EU Periphery: The Impact of Changing Market Potential," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 04.02, Université de Lausanne, Faculté des HEC, DEEP.
  3. Thiess Büttner & Johannes Rincke, 2004. "Labor Market Effects of Economic Integration - The Impact of Re-Unification in German Border Regions," CESifo Working Paper Series 1179, CESifo Group Munich.
  4. Munich, Daniel & Svejnar, Jan & Terrell, Katherine, 2005. "Is women's human capital valued more by markets than by planners?," Journal of Comparative Economics, Elsevier, vol. 33(2), pages 278-299, June.
  5. Kamil Galušèák & Daniel Münich, 2005. "Regional Wage Adjustments and Unemployment: Estimating the Time-Varying Wage Curve (in English)," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 55(1-2), pages 68-82, January.
  6. Alexandra Spitz-Oener, 2006. "Technical Change, Job Tasks, and Rising Educational Demands: Looking outside the Wage Structure," Journal of Labor Economics, University of Chicago Press, vol. 24(2), pages 235-270, April.
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