Trade and Labour Market Adjustment [electronic resource] / Susan Stone, Patricia Sourdin and Clarisse Legendre
Material type:
- F16
- F23
- J08
- F66
Item type | Home library | Collection | Call number | Status | Date due | Barcode | Item holds | |
---|---|---|---|---|---|---|---|---|
Working Paper | Biblioteca Digital | Colección OECD | OECD 5k4c6spvddwj-en (Browse shelf(Opens below)) | Not For Loan |
Collection: Colección OECD Close shelf browser (Hides shelf browser)
No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | ||
OECD 5k4c42jmn5zp-en Rethinking Europe's « Rule of Law » and Enlargement Agenda The Fundamental Dilemma / | OECD 5k4c42jrmp35-en Civil Service Professionalisation in the Western Balkans | OECD 5k4c43014plt-en The Competitiveness of Global Port-Cities: The Case of Mersin, Turkey | OECD 5k4c6spvddwj-en Trade and Labour Market Adjustment | OECD 5k4c6tbcvvq2-en Empowering and Protecting Consumers in the Internet Economy | OECD 5k4c78m89ng0-fr Quelles sont les retombées sociales de l'éducation ? | OECD 5k4c78md0sbn-fr L'école : qu'en pensent les élèves ? |
While it is widely accepted that there are adjustment costs associated with the reallocation of resources in response to freer trade, in most models these costs are assumed to be very small. However, more recent evidence is casting doubt on this assumption. This paper develops a unique dataset based on harmonised labour force surveys for six economies, facilitating the comparison of short term labour market impacts from trade across countries. Data are reported at the individual worker level, allowing a comparison of impacts at both the industry and occupation levels. While the results of this empirical analysis at the industry level are very much in line with established research, the results at the occupation level are more varied. Overall, and as expected, impacts are generally larger for occupations than at the industry level. These results are consistent with modern trade theory which posits that an expanding export sector rewards mostly high skilled workers and that some workers may find it more difficult to switch occupations than to switch industries. Outcomes can also be explained in the context of labour market frictions and highlight the important role of labour market policy - as well as trade policy - in structural adjustment. Our results are consistent with sticky sector-specific human capital and information asymmetries, especially with respect to opportunities in different regions within the same country. A wide range of policies can be employed to address these labour market frictions to improve worker mobility and reduce adjustment costs. Further efforts to specify appropriate policies to accompany trade openness is warranted; doing so would go a long way towards improving employment outcomes and generating more inclusive growth.
There are no comments on this title.