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More important than ever: Employment content of extra-EU exports

Author

Listed:
  • Zornitsa Kutlina-Dimitrova

    (DG Trade)

  • José Manuel Rueda-Cantuche

    (DG Trade)

Abstract

• In 2019, extra-EU exports of goods and services are more important than ever, supporting 38 million jobs in the EU. This corresponds to an increase of 11 million jobs in one decade. On average, each billion euro of EU exports to third countries supported about 12,000 jobs in the EU. • European workers from all Member States benefit from EU exports. These job opportunities are due to exporting firms expanding sales outside the EU but also because firms supply indirectly goods and services to exporting industries. Almost one fifth or 6.5 million jobs supported by extra-EU exports are in firms providing intermediate inputs along the Single Market supply chains. • Export-related jobs in the EU are, on average, 12% better paid than other jobs. The export wage premium ranges from 5% to 14%, depending on workers’ skill level and occupational profile. • With the expansion of global value chains, EU exports support jobs in our trading partners in addition to jobs sustained domestically. Almost 24 million jobs beyond the EU are supported by EU exports, thanks to EU firms participating in global supply chains.

Suggested Citation

  • Zornitsa Kutlina-Dimitrova & José Manuel Rueda-Cantuche, 2021. "More important than ever: Employment content of extra-EU exports," DG TRADE Chief Economist Notes 2021-2, Directorate General for Trade, European Commission.
    • Handle: RePEc:ris:dgtcen:2021_002
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    References listed on IDEAS

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    1. Marcel P. Timmer & Erik Dietzenbacher & Bart Los & Robert Stehrer & Gaaitzen J. Vries, 2015. "An Illustrated User Guide to the World Input–Output Database: the Case of Global Automotive Production," Review of International Economics, Wiley Blackwell, vol. 23(3), pages 575-605, August.
    2. Zornitsa Kutlina-Dimitrova & José Manuel Rueda-Cantuche, 2021. "The impact of COVID-19 on exports related jobs," DG TRADE Chief Economist Notes 2021-1, Directorate General for Trade, European Commission.
    3. Inaki Arto & Jose M. Rueda-Cantuche & Ignacio Cazcarro & Antonio F. Amores & Erik Dietzenbacher & M. Victoria Roman & Zornitsa Kutlina-Dimitrova, 2018. "EU exports to the world: Effects on employment," JRC Research Reports JRC113071, Joint Research Centre.
    4. Timmer, Marcel P. & Los, Bart & Stehrer, Robert & de Vries, Gaaitzen J., 2016. "An Anatomy of the Global Trade Slowdown based on the WIOD 2016 Release," GGDC Research Memorandum GD-162, Groningen Growth and Development Centre, University of Groningen.
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    Cited by:

    1. Zornitsa Kutlina-Dimitrova & Pablo Piñero & Jose Manuel Rueda-Cantuche, 2022. "Gender patterns of EU exports: jobs and wage differentials," DG TRADE Chief Economist Notes 2022-1, Directorate General for Trade, European Commission.

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    Keywords

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    JEL classification:

    • B27 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - International Trade and Finance
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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