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Trade Liberalization and Labor Market Adjustments: Does Rent Sharing Matter?

16th July 2019
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Authors: Pham Dinh Long, Pham Thi Bich Ngoc and Holger Görg (Forthcoming, Emerging Markets Finance and Trade)

Using a firm level data set, this paper investigates the impact of trade liberalization on employment and wages in Vietnamese manufacturing during 2003 – 2008. Different from the previous researches, we consider indirect effects of trade liberalization via real output for the employment and via rent sharing for the wage adjustments. Overall, we find empirical evidence that trade liberalization has a significantly negative effect on employment and wage but with a minor magnitude. This research approach allows a further investigation for the role of gender and skill earning gaps, and trade union for the wage response. There exist differences in gender and skill earnings gaps but trade liberalization can moderate these gaps.

Keywords: trade Liberalization, labor market adjustments, rent sharing, manufacturing

JEL: F16, O12

 

DOI: https://doi.org/10.1080/1540496X.2019.1643316 (published online)


Involved Team members

  • Prof. Holger Görg, Ph.D.

Projects

Project 1
Cross-cultural differences in the perception of corporate social responsibility and consumer social responsibility along global supply chains
Project 1
Experimental studies of moral responsibility in global supply chains
Project 1
Modelling economic and social dimensions of global supply chains
Project 1
Global supply chains, environmental regulation and green innovation

Other Projects

Cross-cultural differences in the perception of corporate social responsibility and consumer social responsibility along global supply chains Experimental studies of moral responsibility in global supply chains
Modelling economic and social dimensions of global supply chains Global supply chains, environmental regulation and green innovation Further KCG Projects

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