Consequences of trade liberalization on the labor market in developing economy : The case of Tunisia
This paper investigates short and long run effects of trade liberalization on employment and wages using a specific factor trade model. Employment and wage equations areestimated using data (1971-1996) for importable and exportable sectors in Tunisia. Results fromempirical testing using the model find some supports for the theoretical predictions of Edwards(1988) for the exportable sector. On the other hand, in the importable sectors, we find resultsthat are opposed to those predicted by Edwards (1988) since employment and wages increase. Apossible reason for the divergence of theory and practice is that the Edward's model is premisedon the basis of a fixed supply of labour. Exportable employment could therefore only rise ifimportable employment fell. However, as we have seen, the supply of labour increaseddramatically in Tunisia as women entered the labour market. This allowed employment inimportable to be maintained (even slightly increase) as the exportable sector expanded.
|Date of creation:||Oct 2001|
|Contact details of provider:|| |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mussa, Michael, 1978. "Dynamic Adjustment in the Heckscher-Ohlin-Samuelson Model," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 775-791, October.
- John M. Abowd & Thomas Lemieux, 1990.
"The Effects of International Competiton on Collective Bargaining Outcomes: A Comparison of the United States and Canada,"
NBER Working Papers
3352, National Bureau of Economic Research, Inc.
- John M. Abowd & Thomas Lemieux, 1991. "The Effects of International Competition on Collective Bargaining Outcomes: A Comparison of the United States and Canada," NBER Chapters, in: Immigration, Trade, and the Labor Market, pages 343-367 National Bureau of Economic Research, Inc.
- Milner, Chris & Wright, Peter, 1998. "Modelling Labour Market Adjustment to Trade Liberalisation in an Industrialising Economy," Economic Journal, Royal Economic Society, vol. 108(447), pages 509-528, March.
- Arulampalam, W. & Robin A. Naylor & Jeremy P. Smith, 2002. "University of Warwick," Royal Economic Society Annual Conference 2002 9, Royal Economic Society.
- Richard A. Brecher, 1974. "Minimum Wage Rates and the Pure Theory of International Trade," The Quarterly Journal of Economics, Oxford University Press, vol. 88(1), pages 98-116.
- Manuel Arellano & Stephen Bond, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Oxford University Press, vol. 58(2), pages 277-297.
- Tom Doan, "undated". "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:mon:ceddtr:64. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.