Publication: Leveraging Trade for More and Better Jobs
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Date
2024-09-12
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Published
2024-09-12
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Maliszewska, Maryla
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Abstract
Trade exposure is traditionally seen as key to job creation and poverty reduction, but its efficacy is questioned amid global labor market upheavals and protectionist trends. Drawing on six underlying studies, this report uses disaggregated data from 1995 to 2019 to explore the nuanced impact or trade on jobs. Specifically, it investigates the impact of trade exposure on job creation, labor earnings, productivity, and job quality across countries with varying income levels. It finds that trade exposure, particularly in exports and global value chains, correlates with increased employment, especially in manufacturing where it is also associated with higher female workforce participation. Higher trade exposure is associated with increased labor earnings, with wage inequality decreasing in low- and middle-income countries due to global value chain integration. Labor productivity improves with export growth, especially benefiting unskilled workers in low-tech manufacturing and agriculture in developing countries. Job quality is also enhanced with more exports, transitioning to salaried employment positions and higher value-added activities outside of production. However, the report notes that trade exposure does not significantly boost job numbers or reduce earnings inequality in low- income countries. It also finds that the positive effects of trade on employment, earnings, and productivity have diminished following the global financial crisis of 2007. These findings Offer insights into future job and trade policy strategies.
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“Maliszewska, Maryla; Winkler, Deborah. 2024. Leveraging Trade for More and Better Jobs. Prosperity Insight Series. © World Bank. http://hdl.handle.net/10986/42148 License: CC BY-NC 3.0 IGO.”
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