IDEAS home Printed from
   My bibliography  Save this paper

Trade Liberalization and Labour Markets: Perspective from OECD Economies


  • Michael Landesmann

    () (The Vienna Institute for International Economic Studies, wiiw)

  • Sebastian Leitner

    () (The Vienna Institute for International Economic Studies, wiiw)

  • Robert Stehrer

    () (The Vienna Institute for International Economic Studies, wiiw)


This study looks at the relationship between trade integration and labour markets for a group of OECD economies (USA, Japan, France, Germany, Netherlands, Sweden, United Kingdom). We examine particularly trade relationships between these OECD economies and different groups of 'Southern' economies Southern Europe, the advanced South East Asian economies, a larger group of developing and catching-up economies, and transition countries from Central and Eastern Europe. The analysis uses a disaggregated data-set comprising 23 manufacturing industries for which production, employment and trade statistics were compiled. It looks at the differentiated pattern of trade integration over the period 1980-96 and examines labour market effects (on employment and on wages) both at a descriptive level and by means of econometric analysis. Evidence for trade effects on labour market variables is found, although the pattern of trade integration proceeds quite differently from what a Heckscher-Ohlin framework would expect. The pattern is much more compatible with a dynamic Ricardian model with catching-up features.

Suggested Citation

  • Michael Landesmann & Sebastian Leitner & Robert Stehrer, 2001. "Trade Liberalization and Labour Markets: Perspective from OECD Economies," wiiw Working Papers 20, The Vienna Institute for International Economic Studies, wiiw.
  • Handle: RePEc:wii:wpaper:20

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Quah, Danny T, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," Economic Journal, Royal Economic Society, vol. 106(437), pages 1045-1055, July.
    2. Fagerberg, Jan, 1988. "International Competitiveness," Economic Journal, Royal Economic Society, vol. 98(391), pages 355-374, June.
    3. Danny Quah, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," CEP Discussion Papers dp0280, Centre for Economic Performance, LSE.
    4. Grupp, Hariolf, 1994. "The measurement of technical performance of innovations by technometrics and its impact on established technology indicators," Research Policy, Elsevier, vol. 23(2), pages 175-193, March.
    5. Bernard, Andrew B & Jones, Charles I, 1996. "Technology and Convergence," Economic Journal, Royal Economic Society, vol. 106(437), pages 1037-1044, July.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Nazia Anjum & Zahid Perviz, 2016. "Effect of Trade Openness on Unemployment in Case of Labour and Capital Abundant Countries," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 5(1), pages 44-58, March.
    2. Arslan Razmi & Robert Blecker, 2008. "Developing Country Exports of Manufactures: Moving Up the Ladder to Escape the Fallacy of Composition?," Journal of Development Studies, Taylor & Francis Journals, vol. 44(1), pages 21-48.
    3. Özlem Onaran, 2007. "The effects of globalization on income distribution," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 100, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    4. Onaran, Özlem, 2008. "The effect of import penetration on labor market outcomes in Austrian manufacturing industry," Department of Economics Working Paper Series 1264, WU Vienna University of Economics and Business.
    5. Martin Falk & Yvonne Wolfmayr, 2005. "Employment Effects of Outsourcing to Low Wage Countries. Empirical Evidence for EU Countries," WIFO Working Papers 262, WIFO.
    6. Lihong Yun, 2008. "Technical Progress and Labour Demand in Swedish Manufacturing Firms," Journal of Industry, Competition and Trade, Springer, vol. 8(2), pages 147-167, June.

    More about this item


    trade liberalization; labour markets; OECD economies; North-South trade;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • L6 - Industrial Organization - - Industry Studies: Manufacturing


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wii:wpaper:20. 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: (Customer service). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.