International Trade and Unemployment: Theory and Cross-National Evidence

Dutt, Pushan; Mitra, Devashish; Ranjan, Priya

doi:10.2139/ssrn.1085994

Cited by 96 publications

(165 citation statements)

References 22 publications

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“…Import competition can reduce the earnings gap between high-and low-tech firms and shift the labor market situation to CSM, if it was initially at EPS. Dutt, Mitra, and Ranjan (2009) present a model that can account for whether trade is based on productivity differences, following Ricardo, or on differences in factor endowments, as suggested by Heckscher-Ohlin. Their model predicts that differences in factor endowments will result in a decrease in unemployment in a labor-abundant country and an increase in a labor-scarce country; results that would be expected from the underlining trade model.…”

Section: Adjusting To Comparative Advantagementioning

confidence: 99%

Can Trade Help Achieve the Employment Targets of the Sustainable Development Goals?

Vandenberg

2017

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Asian Development Bank InstituteThe Working Paper series is a continuation of the formerly named Discussion Paper series; the numbering of the papers continued without interruption or change. ADBI's working papers reflect initial ideas on a topic and are posted online for discussion. ADBI encourages readers to post their comments on the main page for each working paper (given in the citation below). Some working papers may develop into other forms of publication. The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of ADBI, ADB, its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.Working papers are subject to formal revision and correction before they are finalized and considered published.Asian Development Bank Institute Kasumigaseki Building, 8th Floor 3-2-5 Kasumigaseki, Chiyoda-ku Tokyo 100-6008, JapanTel:+81-3-3593-5500 Fax:+81-3-3593-5571 URL:www.adbi.org E-mail: info@adbi.org AbstractThe paper asks whether trade can help to achieve the employment targets of the Sustainable Development Goals. The focus is on Goal 8, which is to "promote sustained, inclusive and sustainable growth, full and productive employment, and decent work for all." The theoretical and empirical links between trade and employment are examined to suggest whether trade has a positive or negative impact on the quantity and quality of employment. At the aggregate level, trade has a positive impact on welfare, which can lead to job creation. However, freer trade causes some sectors and firms to expand and others to shrink. This adjustment process creates both a demand for labor in some sectors and job losses in others. Government policies to cushion the impact of adjustment and facilitate the movement of labor from declining to rising sectors are discussed.

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Section: Adjusting To Comparative Advantagementioning

confidence: 99%

Can Trade Help Achieve the Employment Targets of the Sustainable Development Goals?

Vandenberg

2017

SSRN Journal

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“…However, more attention has been devoted in recent time to the unemployment-trade nexus in models with labour market frictions (Davis and Harrigan, 2007;Kreickemeier, 2009, 2010;Felbermayr et al, 2008;Helpman and Itskhoki, 2010;Dutt et al, 2009). In the long run, these models predict that the equilibrium unemployment might be either positively or negatively affected by trade liberalisation.…”

Section: Literature Reviewmentioning

confidence: 99%

Offshoring and job stability: Evidence from Italian manufacturing

Turco¹,

Maggioni²,

Picchio³

2013

Structural Change and Economic Dynamics

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We study the relationship between offshoring and job stability in Italy in the period 1995-2001 by using an administrative dataset on manufacturing workers. We find that the international fragmentation of production negatively affects job stability. Service offshoring and material purchases from developed countries foster job-to-job transitions within manufacturing of all workers and white collars, respectively. However, the most detrimental effects for job stability come from material offshoring to low income countries which drives blue collar workers out of manufacturing. Therefore, policy interventions should especially focus on this latter category of workers more exposed to fragmentation processes and foreign competition. © 2013 Elsevier B.V

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“…In columns (4) to (6) in Table 6 we introduce additional control variables following Dutt, Mitra, and Ranjan (2009). As openness measure, we return to the total trade openness measure from our preferred specification.…”

Section: Trade Openness Measures and Additional Controlsmentioning

confidence: 99%

Migration, Trade and Unemployment

Heid

Larch

2012

Economics

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A source of anxiety of policy makers and the public in general is the detrimental impact of trade and immigration on unemployment. The transitory restrictions for worker migration after the EU enlargements of 2004 and 2007 exemplify the supposed negative effect of immigration on labor markets. This paper aims to identify the effects of immigration alongside trade on unemployment controlling for the high correlation between immigration and goods flows in order to prevent an omitted variable bias. The authors use data from 24 OECD countries over the period from 1997 to 2007 and employ instrumental variables fixed effects and dynamic panel estimators in order to account for unobserved heterogeneity as well as the potential endogeneity of migration flows and the high persistence of unemployment. We find no significant effect of immigration on unemployment on average. Special IssueResponding to the Labour Market Challenges of Globalisation JEL F22, F16, C23, C26, F15

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International Trade and Unemployment: Theory and Cross-National Evidence

Cited by 96 publications

References 22 publications

Can Trade Help Achieve the Employment Targets of the Sustainable Development Goals?

Can Trade Help Achieve the Employment Targets of the Sustainable Development Goals?

Offshoring and job stability: Evidence from Italian manufacturing

Migration, Trade and Unemployment

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