How Wages and Employment Adjust to Trade Liberalization: Quasi-Experimental Evidence from Austria

Détails

ID Serval
serval:BIB_D33413962A01
Type
Article: article d'un périodique ou d'un magazine.
Collection
Publications
Institution
Titre
How Wages and Employment Adjust to Trade Liberalization: Quasi-Experimental Evidence from Austria
Périodique
Journal of International Economics
Auteur(s)
Brülhart M., Carrère C., Trionfetti F.
ISSN
0022-1996
Statut éditorial
Publié
Date de publication
01/2012
Peer-reviewed
Oui
Volume
86
Numéro
1
Pages
68-81
Langue
anglais
Résumé
We study the response of regional employment and nominal wages to trade liberalization, exploiting the natural experiment provided by the opening of Central and Eastern European markets after the fall of the Iron Curtain in 1990. Using data for Austrian municipalities, we examine di¤erential pre- and post-1990 wage and employment growth rates between regions bordering the formerly communist economies and interior regions. If the 'border regions'are de...ned narrowly, within a band of less than 50 kilometers, we can identify statistically signi...cant liberalization e¤ects on both employment and wages. While wages responded earlier than employment, the employment e¤ect over the entire adjustment period is estimated to be around three times as large as the wage e¤ect. The implied slope of the regional labor supply curve can be replicated in an economic geography model that features obstacles to labor migration due to immobile housing and to heterogeneous locational preferences.
Mots-clé
Trade liberalization, Spatial adjustment, Regional labor supply, Natural experiment
Web of science
Création de la notice
19/08/2011 19:33
Dernière modification de la notice
20/08/2019 15:53
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