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Author: Trang Hoang Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
Using Vietnamese firm-level data from 2000 to 2010, this paper measures firm-level labor market distortion with a nonparametric production function approach and examines the impacts of an export shock on such measured distortion. Our measurement indicates substantial wedges between equilibrium marginal revenue products of labor (MRPL) and wages, suggesting that marginal workers get paid roughly 45% of their MRPL. Following the US-Vietnam Bilateral Trade Agreements (BTA) that significantly improves market access for Vietnamese manufacturers, we find that those firms in industries exposed more to the US tariff reductions see relatively faster employment growth, faster increase in labor share, and faster decline in their incurred labor market distortion. The comprehensive nature of Vietnamese firm-level data allows us to make two further contributions. First, we exploit consistent gender composition information to measure distortion separately for male and female workers. We find that the average distortion is 44% higher for female relative to male workers. In addition, the overall reduction of labor market distortion ensued from the BTA is largely driven by the declining distortion for female workers. Second, we exploit data on other formal sectors of the economy to investigate whether BTA exposure in manufacturing spillovers to other sectors via local labor market linkages. We find some evidence for spillovers in terms of employment and labor share.
Author: Trang Hoang Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
Using Vietnamese firm-level data from 2000 to 2010, this paper measures firm-level labor market distortion with a nonparametric production function approach and examines the impacts of an export shock on such measured distortion. Our measurement indicates substantial wedges between equilibrium marginal revenue products of labor (MRPL) and wages, suggesting that marginal workers get paid roughly 45% of their MRPL. Following the US-Vietnam Bilateral Trade Agreements (BTA) that significantly improves market access for Vietnamese manufacturers, we find that those firms in industries exposed more to the US tariff reductions see relatively faster employment growth, faster increase in labor share, and faster decline in their incurred labor market distortion. The comprehensive nature of Vietnamese firm-level data allows us to make two further contributions. First, we exploit consistent gender composition information to measure distortion separately for male and female workers. We find that the average distortion is 44% higher for female relative to male workers. In addition, the overall reduction of labor market distortion ensued from the BTA is largely driven by the declining distortion for female workers. Second, we exploit data on other formal sectors of the economy to investigate whether BTA exposure in manufacturing spillovers to other sectors via local labor market linkages. We find some evidence for spillovers in terms of employment and labor share.
Author: Joshua Karcher Publisher: GRIN Verlag ISBN: 3346017117 Category : Business & Economics Languages : en Pages : 20
Book Description
Seminar paper from the year 2018 in the subject Economics - International Economic Relations, grade: 1,0, University of Mannheim, language: English, abstract: The following work presents the main results of the article "US Exports and Employment" by Robert C. Feenstra, Hong Ma and Yuan Xu from September 2017. Moreover, this work will focus on the underlying econometric methodology and will discuss possible weaknesses. Further, the author examines the scientific potential of the article and its contribution to science. The authors of the article used instrument variables regressions to examine the unbiased effects of the change in the US industry level import penetration from China and the change of US global industrial export exposure on US employment. Increasing imports from China have been the subject of massive critics from the White House and in particular from President Donald Trump. One often repeated argument in favour of hampering imports from China has been the job losses in the manufacturing sector due to import competition. Although, various papers focus on job reducing effects of surging imports from China and the theory that export exposure creates jobs is well accepted, the effects on the US labour market due to changes in global export exposure had not been examined yet.
Author: Mr.Yasser Abdih Publisher: International Monetary Fund ISBN: 1484311000 Category : Business & Economics Languages : en Pages : 26
Book Description
The U.S. labor share of income has been on a secular downward trajectory since the beginning of the new millennium. Using data that are disaggregated across both state and industry, we show the decline in the labor share is broad-based but the extent of the fall varies greatly. Exploiting a new data set on the task characteristics of occupations, the U.S. input-output tables, and the Current Population Survey, we find that in addition to changes in labor institutions, technological change and different forms of trade integration lowered the labor share. In particular, the fall was largest, on average, in industries that saw: a high initial intensity of “routinizable” occupations; steep declines in unionization; a high level of competition from imports; and a high intensity of foreign input usage. Quantitatively, we find that the bulk of the effect comes from changes in technology that are linked to the automation of routine tasks, followed by trade globalization.
Author: Pierre-Richard Agénor Publisher: International Monetary Fund ISBN: 1451854781 Category : Business & Economics Languages : en Pages : 98
Book Description
This paper examines the role of the labor market in the transmission process of adjustment policies in developing countries. It begins by reviewing the recent evidence regarding the functioning of these markets. It then studies the implications of wage inertia, nominal contracts, labor market segmentation, and impediments to labor mobility for stabilization policies. The effect of labor market reforms on economic flexibility and the channels through which labor market imperfections alter the effects of structural adjustment measures are discussed next. The last part of the paper identifies a variety of issues that may require further investigation, such as the link between changes in relative wages and the distributional effects of adjustment policies.
Author: Jaime Behar Publisher: ISBN: Category : Exports Languages : en Pages : 300
Book Description
This is a study of the link between foreign trade and industrial employment in Mexico. A general conclusion is that Mexico's potential employment-gains from an expansion of manufactured exports are extremely low. Another is that this cannot be attributed to labour market distortions. the national level of analysis, the study focuses first on export patterns and policies while relating these issues to the current financial crisis. Econometric techniques and a model of balance of payments are applied. The main result is the policy efforts to stimulate manufactured export growth are efficacious for attaining external balance. Second, the export performance of the manufacturing sector is appraised in relation to the objective of employment generation. The results lend support to the hypothesis that Mexico will find its comparative advantages in the export expansion of modern industries which adopt high-technology production processes. Using imput-output techniques and skill data by industry, it is shown that growth in external demand has little to offer for the solution of the urban employment problem and to the objective of improving income distribution. the labour market of metropolitian monterrey, the capital city of the state of Nuevo Leon. An input-output model for Nuevo Leon is presented in this part of the study. By using survey and secondary data, interindustry flows and final demand sectors are estimated. A modified version of the supply-demand pool technique is then used to derive the matrix of regional input coefficients. Multiplier analysis is performed and the employment effects to the state's manufactured exports are estimated. In general, the results confirm the conclusion drawn at the national level of analysis, and illustrate the importance of considering regional variables when designing trade and employment policies.
Author: Erhan Artuc Publisher: World Bank Publications ISBN: 1464812497 Category : Business & Economics Languages : en Pages : 215
Book Description
South Asia has grown rapidly with significant reductions in poverty, but it has not been able to match the fast-growing working age population, leading to lingering concerns about jobless growth and poor job quality. Could export growth in South Asia result in better labor market outcomes? The answer is yes, according to our study, which rigorously estimates—using a new methodology—the potential impact from higher South Asian exports per worker on wages and employment over a 10-year period. Our study shows the positive side of trade. It finds that increasing exports per worker would result in higher wages—mainly for better-off groups, like more educated workers, males, and more-experienced workers—although less-skilled workers would see the largest reduction in informality. How can the benefits be spread more widely? Our study suggests that scaling up exports in labor-intensive industries could significantly lower informality for groups like rural and less-educated workers in the region. Also, increasing skills, and participation of women and young workers in the labor force could make an even bigger dent in informal employment. The region could achieve these gains by: (i) boosting and connecting exports to people (e.g., removing trade barriers and investment in infrastructure); (ii) eliminating distortions in production (e.g., by more efficient allocation of inputs); and (iii) protecting workers (e.g., by investing in education and skills).
Author: Martin Rama Publisher: ISBN: Category : Languages : en Pages : 42
Book Description
Product and labor market distortions move in the same direction in response to economic and social changes. Conditionality by foreign agencies should target product market distortions. Once they are removed or diminished, labor market distortions will adjust in the desired direction.Rama and Tabellini use the common agency approach to analyze the joint determination of product and labor market distortions in a small (developing) open economy.Capital owners and union members lobby the government on tariffs and minimum wages, while factors of production in agriculture (the informal sector) are not organized. The government cares about social welfare, but also values the contributions (monetary or else) made by organized groups.Rama and Tabellini show that product and labor market distortions move in the same direction in response to changes in the relevant economic and political parameters, and that the level of those distortions is not modified by social pacts between capital and labor. They also show that conditionality by foreign agencies should target product market distortions, not labor market distortions. Labor market distortions ought not to be targeted because they are second best: they are the optimal response to the product market distortions. Labor market distortions are likely to adjust in the desired direction once product market distortions are removed or diminished.This paper - a product of the Poverty and Human Resources Division, Policy Research Department - is part of a larger effort in the department to analyze the implications of labor market distortions. The study was funded by the Bank's Research Support Budget under the research project The Impact of Labor Market Policies and Institutions on Economic Performance (RPO 678-46). Martin Rama may be contacted at [email protected].
Author: Trang Hoang
Author: Trang Hoang
Author: Joshua Karcher
Author: Mr.Yasser Abdih
Author: Pierre-Richard Agénor
Author: Harry F. Lutton
Author: Carl Davidson
Author: Jaime Behar
Author: Erhan Artuc
Author: Martin Rama
Author: Martin Rama