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Trade and Employment: Stylized Facts and Research Findings

  • Bernard Hoekman
  • Alan L. Winters

The substantial literature investigating the links between trade, trade policy, and labour market outcomes has generated a number of stylized facts, but many open questions remain. A common finding is that much of the shorter-run impacts of trade and reforms involve reallocation of labour or wage impacts within sectors. Wage responses to trade and trade reforms are generally greater than employment impacts, but trade can only explain a small fraction of the general increase in wage inequality observed in recent decades. A priority area for future research is to study the employment effects of services trade and investment reforms.

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Paper provided by United Nations, Department of Economics and Social Affairs in its series Working Papers with number 7.

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Length: 25 pages
Date of creation: Nov 2005
Date of revision:
Handle: RePEc:une:wpaper:7
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