Trade and unemployment : what do the data say?

Felbermayr, Gabriel; Prat, Julien; Schmerer, Hans-Jörg

Trade and unemployment : what do the data say?

dc.contributor.author	Felbermayr, Gabriel	de
dc.contributor.author	Prat, Julien	de
dc.contributor.author	Schmerer, Hans-Jörg	de
dc.date.accessioned	2024-04-08T08:42:27Z
dc.date.available	2024-04-08T08:42:27Z
dc.date.created	2009-06-18
dc.date.issued	2009
dc.description.abstract	This paper documents a robust empirical regularity: in the long-run, higher trade openness is causally associated to a lower structural rate of unemployment. We establish this fact using: (i) panel data from 20 OECD countries, (ii) cross-sectional data on a larger set of countries. The time structure of the panel data allows to deal with endogeneity concerns, whereas cross-sectional data make it possible to instrument openness by its geographical component. In both setups, we carefully purge the data from business cycle effects, include a host of institutional and geographical variables, and control for within-country trade. Our main finding is robust to various definitions of unemployment rates and openness measures. The preferred specification suggests that a 10 percent increase in total trade openness reduces unemployment by about one percentage point. Moreover, we show that openness affects unemployment mainly through its effect on TFP and that labor market institutions do not appear to condition the effect of openness.	en
dc.identifier.swb	307624900
dc.identifier.uri	https://hohpublica.uni-hohenheim.de/handle/123456789/5253
dc.identifier.urn	urn:nbn:de:bsz:100-opus-3636
dc.language.iso	eng
dc.relation.ispartofseries	Hohenheimer Diskussionsbeiträge; 310
dc.rights.license	publ-ohne-pod	en
dc.rights.license	publ-ohne-pod	de
dc.rights.uri	http://opus.uni-hohenheim.de/doku/lic_ubh.php
dc.subject	International trade	en
dc.subject	Real openness	en
dc.subject	Unemployment	en
dc.subject	GMM models	en
dc.subject	IV esti- mation	en
dc.subject.ddc	330
dc.subject.gnd	Welthandel	de
dc.subject.gnd	Arbeitslosigkeit	de
dc.title	Trade and unemployment : what do the data say?	de
dc.type.dcmi	Text	de
dc.type.dini	WorkingPaper	de
local.access	uneingeschränkter Zugriff	en
local.access	uneingeschränkter Zugriff	de
local.bibliographicCitation.publisherPlace	Universität Hohenheim	de
local.faculty.number	3	de
local.institute.number	520alt	de
local.opus.number	363
local.series.issueNumber	310
local.series.title	Hohenheimer Diskussionsbeiträge
local.university	Universität Hohenheim	de
local.university.faculty	Fakultät Wirtschafts- und Sozialwissenschaften	de
local.university.institute	Institut für Volkswirtschaftslehre (bis 2010)	de

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