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The impacts of trade liberalization on employment and wages in Tunisian industries
MSE - Université Paris Panthéon-Sorbonne, Paris, France.
Techno-Economics and Policy Program, College of Engineering, Seoul National University, San 56-1, Shinlimdong, Kwanak-gu, Seoul 151-742, South Korea.
MTT Economic Research, Helsinki, Finland.ORCID iD: 0000-0002-7902-4683
2005 (English)In: Journal of International Development, ISSN 0954-1748, E-ISSN 1099-1328, Vol. 17, no 4, 527-551 p.Article in journal (Refereed) Published
Abstract [en]

This paper investigates short and long-run effects of trade liberalization on employment and wages. Employment and wage equations are estimated using data (1971-96) for importable and exportable industrial sectors in Tunisia. Causality tests show that causality is unidirectional. Wages strongly causes employment. There is significant difference in the direction of effects in the short and long-run. Empirical results only support the short-run theoretical predictions for the exportable sectors. A possible reason for the divergence of theory and practice is that the theoretical model is premised on the basis of a fixed supply of labour. Employment at exportable sectors could therefore only rise if employment at importable fell. However, as we have seen, the supply of labour increased dramatically in Tunisia as women entered the labour market. This allowed employment at importable sectors to be maintained as the exportable sector expanded. Copyright ©2005 John Wiley & Sons, Ltd.

Place, publisher, year, edition, pages
2005. Vol. 17, no 4, 527-551 p.
Keyword [en]
employment; liberalization; trade reform; wage, Africa; Eastern Hemisphere; North Africa; Tunisia; World
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-24498DOI: 10.1002/jid.1173Scopus ID: 2-s2.0-18844425018OAI: oai:DiVA.org:hj-24498DiVA: diva2:742834
Available from: 2014-09-02 Created: 2014-09-01 Last updated: 2016-01-14Bibliographically approved

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