Trade and labor market : what do we know?

Matthieu Daniel CROZET, Gianluca OREFICE

Research output: Journal PublicationsPolicy or Profession paper

Abstract

There is a large consensus in the economic literature suggesting the positive impact of globalization on the aggregate well-being of a country. However, a clear-cut conclusion has not been reached on winners and losers from globalization. For this reason, international trade is often accused of increasing wage inequality in both developing and developed countries. A first stream of literature focused on workers characteristics to identify winners and losers from globalization. Workers with characteristics (e.g., education levels) intensively used in import-competing sectors are likely to suffer from international trade; while workers having characteristics intensively needed in exporting sectors will gain. This is a clear-cut explanation but it does not fit the data as the reality is much more complex. Labor market shocks caused by trade openness are diffuse, and it is difficult to group those who suffer/gain into well-identified categories. The firm and the type of task in which workers are employed definitely contribute to identify winners and losers from globalization. Recent CEPII research outputs, based on detailed French firm and worker-level data, confirm that identifying who lost and who gained with globalization is a very difficult task.
Original languageEnglish
Pages (from-to)1-15
Number of pages15
JournalCEPII Policy Brief
Volume2017
Issue number15
Publication statusPublished - Mar 2017
Externally publishedYes

Fingerprint

Labour market
Workers
Globalization
International trade
Import
Research output
Developed countries
Wage inequality
Developing countries
Exporting
Well-being
Trade openness
Economics
Education

Cite this

CROZET, Matthieu Daniel ; OREFICE, Gianluca. / Trade and labor market : what do we know?. In: CEPII Policy Brief. 2017 ; Vol. 2017, No. 15. pp. 1-15.
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abstract = "There is a large consensus in the economic literature suggesting the positive impact of globalization on the aggregate well-being of a country. However, a clear-cut conclusion has not been reached on winners and losers from globalization. For this reason, international trade is often accused of increasing wage inequality in both developing and developed countries. A first stream of literature focused on workers characteristics to identify winners and losers from globalization. Workers with characteristics (e.g., education levels) intensively used in import-competing sectors are likely to suffer from international trade; while workers having characteristics intensively needed in exporting sectors will gain. This is a clear-cut explanation but it does not fit the data as the reality is much more complex. Labor market shocks caused by trade openness are diffuse, and it is difficult to group those who suffer/gain into well-identified categories. The firm and the type of task in which workers are employed definitely contribute to identify winners and losers from globalization. Recent CEPII research outputs, based on detailed French firm and worker-level data, confirm that identifying who lost and who gained with globalization is a very difficult task.",
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CROZET, MD & OREFICE, G 2017, 'Trade and labor market : what do we know?', CEPII Policy Brief, vol. 2017, no. 15, pp. 1-15.

Trade and labor market : what do we know? / CROZET, Matthieu Daniel; OREFICE, Gianluca.

In: CEPII Policy Brief, Vol. 2017, No. 15, 03.2017, p. 1-15.

Research output: Journal PublicationsPolicy or Profession paper

TY - JOUR

T1 - Trade and labor market : what do we know?

AU - CROZET, Matthieu Daniel

AU - OREFICE, Gianluca

PY - 2017/3

Y1 - 2017/3

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AB - There is a large consensus in the economic literature suggesting the positive impact of globalization on the aggregate well-being of a country. However, a clear-cut conclusion has not been reached on winners and losers from globalization. For this reason, international trade is often accused of increasing wage inequality in both developing and developed countries. A first stream of literature focused on workers characteristics to identify winners and losers from globalization. Workers with characteristics (e.g., education levels) intensively used in import-competing sectors are likely to suffer from international trade; while workers having characteristics intensively needed in exporting sectors will gain. This is a clear-cut explanation but it does not fit the data as the reality is much more complex. Labor market shocks caused by trade openness are diffuse, and it is difficult to group those who suffer/gain into well-identified categories. The firm and the type of task in which workers are employed definitely contribute to identify winners and losers from globalization. Recent CEPII research outputs, based on detailed French firm and worker-level data, confirm that identifying who lost and who gained with globalization is a very difficult task.

UR - http://commons.ln.edu.hk/sw_master/5998

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JF - CEPII Policy Brief

SN - 2270-258X

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