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Trade in Global Value Chain: An Assessment of Labor Market Implication

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  • Farole, Thomas
  • Hollweg, Claire
  • Winkler, Deborah

Abstract

The paper is structured in six further sections following this introduction. Section two develops a conceptual framework, and reviews the literature on the relationship between trade integration and labor market outcomes. Section three outlines the empirical framework and data used in the analysis. Section four presents results on the relationship between overall trade integration (through exports) and labor market outcomes. Section five then focuses specifically on GVC trade, and assesses the relationship between labor market outcomes and GVC integration as a buyer and as a seller. Section six tests if select policy indicators mediate these relationships between trade integration and labor market outcomes. Finally, section seven concludes, with a summary of results and areas for future research.

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  • Farole, Thomas & Hollweg, Claire & Winkler, Deborah, 2018. "Trade in Global Value Chain: An Assessment of Labor Market Implication," Jobs Group Papers, Notes, and Guides 30318036, The World Bank.
    • Handle: RePEc:wbk:jbsgrp:30318036
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    Keywords

    skilled labor; labor share; labor market outcome; labor demand; relative demand; trade integration; foreign value added; trade and labor markets; domestic value added; labor value; export sector; global value chain; country income group; cross-country sample; demand for labor; effect of trade; reallocation of resource; measure of trade; Labor Market Flexibility; quality of education; elasticity of substitution; share of labor; share of export; trade and investment; unit of output; high income economy; deep trade integration; wage effect; share of trade; labor market policy; rapid technological progress; higher value added; scale production; terms of trade; real wage growth; share of income; local labor market; net job loss; wages for low; method of production; number of jobs; impact of service; scale of production; special economic zone; labor market impact; propensity score matching; national income accounting; factor of production; supply of land; privileges and immunity; negative effect; advanced economy; conceptual framework; labor outcomes; Trade Policy; gross exports; Trade Policies; imported inputs; fixed effect; factor share; industrialized country; export share; summary statistic; Industrialized countries; technological change; empirical specification; earnings loss; positive impact; high share; econometric study; total output; employment effect; trade measure; manufacturing industry; future research; intermediate input; manufacturing sector; total employment; substitution effect;
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