(World Bank, Washington, DC, 2016-02)
Ruppert Bulmer, Elizabeth; Hollweg, Claire H.
As countries become increasingly
integrated into the global economy, increased trade links
with other countries translate into increased access to
better or cheaper imports and increased demand for exports.
Both can have an impact on consumers, producers and workers
through household consumption, household production, and
labor incentives. The channels through which increased trade
integration can affect labor include: (i) the consumption
channel, typically leading to an increase in purchasing
power and therefore higher real wages, and (ii) the
employment effect due to increased labor demand. The extent
of these gains to trade will depend on the incidence of
trade policies or trade shocks; in other words, the impact
will depend on which products become less expensive, which
sectors increase demand for skilled or unskilled labor, and
which workers can access these new jobs. This report
utilizes a range of methodologies and datasets that
implicitly link trade and jobs; by using these complementary
analytical approaches, we generate multiple perspectives on
Lao PDR’s recent labor market outcomes, and their
implications for Lao PDR’s current and future trade competitiveness.