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The Impacts of Trade Liberalization on Employment and Wages in Tunisian Industries

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dc.creator Haouas, Ilham
dc.creator Yagoubi, Mahmoud
dc.creator Heshmati, Almas
dc.date 2003
dc.date.accessioned 2013-10-16T07:11:41Z
dc.date.available 2013-10-16T07:11:41Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/20650
dc.identifier ppn:362044333
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/20650
dc.description 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 sectors in Tunisia. Causality tests show that causality is unidirectional. Wages strongly causes employment but employment does not cause wages. There is significant difference in the direction of responses in the short and long run. Results from empirical testing using the models find only support for the short-run theoretical predictions for the exportable sector. Similar results obtained for the importable sectors. We find the differences in the short and long-run wage and employment responses to changes in export to be explained by learning by doing, organizational changes and improved factor utilization and labour productivity. 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. Exportable employment could therefore only rise if importable employment fell. However, as we have seen, the supply of labour increased dramatically in Tunisia as women entered the labour market. This allowed importable employment to be maintained (even slightly increased) as the exportable sector expanded.
dc.language eng
dc.publisher
dc.relation IZA Discussion paper series 688
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject F10
dc.subject J31
dc.subject L60
dc.subject J23
dc.subject E24
dc.subject C23
dc.subject ddc:330
dc.subject trade
dc.subject labour market
dc.subject exports
dc.subject imports
dc.subject manufacturing
dc.subject panel data
dc.subject Tunisia
dc.subject Außenhandelsliberalisierung
dc.subject Außenwirtschaft
dc.subject Arbeitsmarkt
dc.subject Lohnniveau
dc.subject Industrielohn
dc.subject Verarbeitendes Gewerbe
dc.subject Tunesien
dc.title The Impacts of Trade Liberalization on Employment and Wages in Tunisian Industries
dc.type doc-type:workingPaper


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