Trade Liberalization and Manufacturing Employment

Trade Liberalization and Manufacturing Employment PDF Author: International Labour Organization
Publisher:
ISBN: 9781280101700
Category :
Languages : en
Pages :

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Trade Liberalization and Manufacturing Employment

Trade Liberalization and Manufacturing Employment PDF Author: International Labour Organization
Publisher:
ISBN: 9781280101700
Category :
Languages : en
Pages :

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Book Description


Trade Liberalization and Manufacturing Employment

Trade Liberalization and Manufacturing Employment PDF Author: Ajit K. Ghose
Publisher:
ISBN: 9789221120667
Category :
Languages : en
Pages : 61

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Trade Liberalization and Manufacturing Employment

Trade Liberalization and Manufacturing Employment PDF Author: Bishwanath Goldar
Publisher:
ISBN: 9789221130802
Category :
Languages : en
Pages : 113

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Employment and Wage Effects of Trade Liberalization

Employment and Wage Effects of Trade Liberalization PDF Author: Ana Revenga
Publisher: World Bank Publications
ISBN:
Category :
Languages : en
Pages : 36

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Book Description
October 1995 Cuts in Mexico's tariff levels were associated with a slight decline in employment in Mexico and with increases in average wages (perhaps reflecting improved productivity in the reformed industries and a shift toward the use of more skilled workers). The wages and employment of skilled production workers were significantly more responsive to changes in protection levels than those of nonproduction workers. In 1985, after decades of an import-substitution industrial strategy, Mexico initiated a radical liberalization of its external sector. Between 1985 and 1988, import licensing requirements were scaled back to a quarter of earlier levels, reference prices were removed, and tariff rates on most products were substantially reduced. By 1989, Mexico was one of the most open economies in the developing world. Adjusting to trade liberalization required the reallocation of resources between sectors and entailed substantial dislocation of workers. Revenga analyzes how Mexico's trade liberalization (1985 - 87) affected employment and wages in industry, focusing on how it affected average employment and earnings rather than on the link between trade and relative wages. She examines the tradeoff between wage and employment adjustment, identifies which labor groups benefited more from liberalization, and tries to associate changes in employment and wages directly with measures of change in trade protection, rather than link them to changes in imports and exports (which is more common). She finds that reductions in quota coverage and tariff levels are associated with moderate reductions in firm-level employment. A 10-point reduction in tariff levels (between 1985 and 1990) is associated with a 2- to 3-percent decline in employment in Mexico. Changes in quota coverage appear to have no discernible effect on wages, but reductions in tariff levels are associated with increases in average wages. This seems to reflect improved productivity in the reformed industries, which may be related to a shift toward the use of more skilled workers. There seems to have been a slight shift in the skill mix in favor of nonproduction workers. This was paralleled by a sharper increase in the wage differential between skilled and unskilled workers. The wages and employment of skilled production workers were significantly more responsive to changes in protection levels than those of nonproduction workers -- perhaps partly because production workers were more heavily concentrated in the industries in which protection levels were greatly reduced. This paper -- a product of the Country Operations Division 1, Latin America and the Caribbean, Country Department II -- was prepared for the World Bank labor markets workshop held in July 1994.

The Impact of Trade with China and India on Argentina's Manufacturing Employment

The Impact of Trade with China and India on Argentina's Manufacturing Employment PDF Author: Luis Castro
Publisher: World Bank Publications
ISBN:
Category : Argentina
Languages : en
Pages : 30

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Book Description
For many in Latin America, the increasing participation of China and India in international markets is seen as a looming shadow of two "mighty giants" on the region's manufacturing sector. Are they really mighty giants when it comes to their impact on manufacturing employment? The authors attempt to answer this question by estimating the effects of trade with China and India on Argentina's industrial employment. They use a dynamic econometric model and industry level data to estimate the effects of trade with China and India on the level of employment in Argentina's manufacturing sector. Results suggest that trade with China and India only had a small negative effect on industrial employment, even during the swift trade liberalization of the 1990s.

Employment and Wage Effects of Trade Liberalization

Employment and Wage Effects of Trade Liberalization PDF Author: Ana Revenga
Publisher:
ISBN:
Category :
Languages : en
Pages : 36

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Cuts in Mexico's tariff l ...

Adjusting to Trade Policy Reform

Adjusting to Trade Policy Reform PDF Author: Steven J. Matusz
Publisher:
ISBN:
Category :
Languages : en
Pages : 60

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Book Description
A survey of more than 50 empirical papers shows that the adjustment costs of trade liberalization are small relative to the benefits. Moreover, manufacturing employment typically increases with trade liberalization. The limited data suggest that trade liberalization reduces poverty.Virtually all of the studies that quantify the adjustment costs of trade liberalization relative to the benefits point to the conclusion that adjustment costs are small in relation to the benefits of trade liberalization.The explanation for low adjustment costs is that: These costs are typically short term and end when workers find a job, but the benefits grow as the economy does. Unemployment doesn't last long, especially where workers' pay was not substantial in the original job. Normal labor turnover often exceeds job displacement from trade liberalization.Moreover, studies that examine the impact of trade liberalization on employment in developing countries find there is little decline - and usually an increase - in manufacturing employment in developing countries a year after trade liberalization, for three reasons: Developing countries tend to have comparative advantage in labor-intensive industries, and trade liberalization tends to favor labor. Interindustry shifts occur after trade liberalization, which minimizes the dislocation of factors of production. In many industries normal labor turnover exceeds dislocation from trade liberalization, so downsizing, when necessary, can be accomplished without much forced unemployment. Matusz and Tarr recommend a uniform tariff to minimize special-interest lobbying for protection since it diffuses the benefits of protection.This paper - a product of Trade, Development Research Group - is part of larger effort in the group to examine how trade liberalization affects growth and poverty reduction. David Tarr may be contacted at dtarr @worldbank.org.

Trade Liberalization and Unemployment

Trade Liberalization and Unemployment PDF Author: Pierre-Richard Agénor
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 40

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Book Description
This paper examines the effect of trade reform on wages and unemployment in a two-sector, three-good economy in which labor is imperfectly mobile across sectors. Wages in the export sector are set so as to minimize turnover costs. The analysis shows that a reduction in tariffs, coupled with an adjustment in lump-sum taxes to equilibrate the government budget, lowers wages in all production sectors in the short and the medium run but has an ambiguous effect on unemployment. Although employment and production of exportables expand in the medium run, the unemployment rate may rise or fall depending on whether the elasticity of wages in the export sector with respect to wages in the nontraded goods sector is lower or greater than unity. Potentially adverse effects may be mitigated in the long run, however, as a result of induced shifts in the structure of production activities.

Adjusting to Trade Policy Reform

Adjusting to Trade Policy Reform PDF Author: Steven Joseph Matusz
Publisher: World Bank Publications
ISBN:
Category : Comercio - Paises en desarrollo
Languages : en
Pages : 63

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Book Description
A survey of more than 50 empirical papers shows that the adjustment costs of trade liberalization are small relative to the benefits. Moreover, manufacturing employment typically increases with trade liberalization. The limited data suggests that trade liberalization reduces poverty.

Trade, Employment, and Adjustment

Trade, Employment, and Adjustment PDF Author: Charles S. Pearson
Publisher: IRPP
ISBN: 9780920380895
Category : Business & Economics
Languages : en
Pages : 108

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