Trade and Labour Market Adjustments
This study describes developments in international trade and OECD labour markets and analyses possible linkages between them. It depicts recent developments in offshoring, trade in tasks and the integration of large emerging economies into the world market. The labour market in major OECD countries has been characterised by rising employment relative to the total population and declining unemployment rates during the past decade. Job security has not changed greatly between 1995 and 2005, but the wage share of national income has declined in many OECD countries. The report does not find evidence of a linkage between import penetration and overall employment or unemployment, but relatively small effects on productivity and employment patterns are found. A shift towards sourcing of imports from emerging markets slightly improves labour productivity and reduces labour demand in the importcompeting sectors or activities. Offshoring of services has a relatively strong positive marginal impact on labour productivity, but the scale of offshoring is still modest. The labour market impact of offshoring is stronger in countries with high employment protection and high barriers to entrepreneurship. The study finally argues that offshoring is motivated by the need for flexibility and lower costs and helps firms remain competitive. Thus, offshoring may well relax the pressure to move the entire manufacturing production chain to low-cost countries.
|Date of creation:||25 Mar 2008|
|Contact details of provider:|| Postal: 2 rue Andre Pascal, 75775 Paris Cedex 16|
Phone: 33-(0)-1-45 24 82 00
Fax: 33-(0)-1-45 24 85 00
Web page: http://www.oecd.org
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:oec:traaab:64-en. 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.