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Trade and Labor Market Outcomes in Developing Countries

Applicant Olarreaga Marcelo
Number 147718
Funding scheme r4d (Swiss Programme for Research on Global Issues for Development)
Research institution Département d'économie Université de Genève
Institution of higher education University of Geneva - GE
Main discipline Economics
Start/End 01.02.2014 - 31.01.2018
Approved amount 1'330'669.00
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Keywords (7)

Wages; Employment; Trade; Labor Markets; Unemployment; Developing Countries; Skills

Lay Summary (French)

Lead
La mondialisation pose autant de risques que d’opportunités pour les pays en voie de développement. Comprendre le lien entre le commerce international et les marchés du travail c’est la clé pour la santé du système commercial international et pour l’amélioration des niveaux de vie de milliards de personnes à la fois dans les pays développés et en voie de développement.
Lay summary

L’objectif de ce projet est d’analyser les défis et les opportunités créées par la mondialisation dans les pays en voie de développement. L’accent sera porté sur les effets du commerce international à la création des opportunités d’emploi dans les secteurs formels et informels, les effets sur le chômage et l’impact sur les rémunérations. Nous évaluerons également l’impact sur la pauvreté et les inégalités. La recherche tend à identifier les politiques qui pourraient modérer les effets négatifs de la mondialisation et d’en optimiser les effets positifs. Nous étudierons le rôle joué par les politiques de développement des talents, la mise à disposition d’infrastructures de transports, les réformes sur le marché du travail et les politiques de promotion des exportations dans les pays en voie de développement. Ce projet aidera aussi les négociateurs commerciaux à mieux comprendre comment les problèmes du commerce et du travail devraient être mis en relation avec les accords commerciaux régionaux et multilatéraux.

CONTEXTE SCIENTIFIQUE ET SOCIÉTAL DU PROJET DE RECHERCHE La mondialisation présente pour les pays en voie de développement à la fois des risques et des opportunités. L’accès aux nouveaux marchés pour les sociétés d’exportations dans les pays de faibles et moyens revenus peut créer des emplois et augmenter le salaire des employés de ces secteurs. Les entreprises locales peuvent avoir accès à de meilleures matières premières et à de meilleures technologies aidant à réduire l’écart de productivité observé dans la plupart des pays en voie de développement. Toutefois, en présence des marchés de travail imparfaits, il est difficile de discerner si les gains provenant du commerce seront présents. De plus, la mondialisation peut accroitre le chômage, la pauvreté et les inégalités de salaires à court et moyen terme, la rendant par conséquent socialement, économiquement et politiquement insoutenable.

Direct link to Lay Summary Last update: 16.12.2013

Responsible applicant and co-applicants

Employees

Publications

Publication
High-Income Export Destinations, Quality and Wages
Brambilla Irene, Porto Guido (2016), High-Income Export Destinations, Quality and Wages, in Journal of International Economics, 98, 21-35.
Informality in an economy with active labor costs
Araujo Luis, Ponczek Vladimir, Portela André (2016), Informality in an economy with active labor costs, in Applied Economics, 48(30), 2868-2882.
A mapping of labor mobility costs in the developing world
Erhan Artuc Daniel Lederman and Guido Porto (2015), A mapping of labor mobility costs in the developing world, in Journal of International Economics , 95(1), 28-41.
Estimating Household Responses to Trade Reforms. Net Consumers and Net Producers in Rural Mexico
Porto Guido (2015), Estimating Household Responses to Trade Reforms. Net Consumers and Net Producers in Rural Mexico, in International Economics, 144, 116-142.
Exports, Price Transmission, and Wage Inequality: Evidence Using the Case of the Impact of AGOA in Ghanaian Manufacturing Firms
Mulangu Francis (2015), Exports, Price Transmission, and Wage Inequality: Evidence Using the Case of the Impact of AGOA in Ghanaian Manufacturing Firms, in Journal of African Development, 17(1), 45-73.
Child labor and learning
Emerson Patrick, Ponczek Vladimir, Child labor and learning, in Economic Development and Cultural Change.
Examining the Export Wage Premium in Developing Countries
Brambilla Irene, Depetris Nicolas, Porto Guido, Examining the Export Wage Premium in Developing Countries, in Review of International Economics.
Exporters, Engineers and Blue-Collar Workers
Brambialla Irene, Daniel Lederman, Guido Porto, Exporters, Engineers and Blue-Collar Workers, in World Bank Economic Review.

Collaboration

Group / person Country
Types of collaboration
CIESS-Econometrica and Universidad Mayor de San Andrés Bolivia (South America)
- in-depth/constructive exchanges on approaches, methods or results
- Publication
- Research Infrastructure
- Exchange of personnel
African Center for Economic Transformation (ACET) Ghana (Africa)
- in-depth/constructive exchanges on approaches, methods or results
- Publication
- Research Infrastructure
- Exchange of personnel
University of Geneva Switzerland (Europe)
- in-depth/constructive exchanges on approaches, methods or results
- Publication
- Research Infrastructure
- Exchange of personnel
Institute of Research of Economic Development (IRED) Kenya (Africa)
- in-depth/constructive exchanges on approaches, methods or results
- Publication
- Research Infrastructure
- Exchange of personnel
Fundacao Getulio Vargas Brazil (South America)
- in-depth/constructive exchanges on approaches, methods or results
- Publication
- Research Infrastructure
- Exchange of personnel

Scientific events

Active participation

Title Type of contribution Title of article or contribution Date Place Persons involved
6th GREThA Development Conference Talk given at a conference Examining the export wage premium in developing countries 16.06.2016 University of Bordeaux, France Depetris Chauvin Nicolas;
Seminario Decon Individual talk Trade in Unemployment 03.06.2016 Universidad de la Republica, Uruguay Olarreaga Marcelo;
Development Economics and Policy Conference, German Economic Association Talk given at a conference Examining the exporter wage premium in developing countries 03.06.2016 Heidelberg University, Germany Depetris Chauvin Nicolas;
33 Journées de Microéconomie Applique Talk given at a conference Examining the export wage premium in developing countries 02.06.2016 Université de Franch-Compté, Besancon, France Depetris Chauvin Nicolas;
Seminar Centre de Recherche et Documents sur les Amériques Individual talk Examining the export wage premium 01.04.2016 INSTITUT DES HAUTES ETUDES DE L'AMÉRIQUE LATINE, Paris, France Depetris Chauvin Nicolas;
DEGIT XX Talk given at a conference Roads, Urbanization and Development: some empirical evidences from Brazilian experience 31.03.2016 IHEID, Geneva, Switzerland Ponczek Vladimir;
DEGIT XX Talk given at a conference Trade and Informality: Evidence from Brazil 03.09.2015 IHEID, Geneva, Switzerland Ponczek Vladimir;
DEGIT XX Talk given at a conference Exporter, engineers and blue-collar workers 03.09.2015 IHEID, Switzerland Porto Guido;
ILO Joint workshop Talk given at a conference Exporter, engineers and blue-collar workers 02.09.2015 ILO Headquarters, Switzerland Porto Guido;
Globalization, working conditions and Health Talk given at a conference Trade opennes effects through price channels on firms' informal employment: the case of Peru (presented by Jorge Davalos) 25.06.2015 Université de Bordeaux, France Ponczek Vladimir;
ILMIT Conference Talk given at a conference Trade in Unemployment 15.06.2015 Ascona, Switzerland Olarreaga Marcelo;
The Latin America and the Caribbean (LCR) Economics Seminar Series Individual talk Trade in Unemployment 13.01.2015 World Bank, Washington DC, United States of America Olarreaga Marcelo;
Seminar CEPII Individual talk Wage and Employment Gains from Exports: Evidence from Developing Countries 11.12.2014 CEPII, France Depetris Chauvin Nicolas;
Annual Meeting of the Latin American and Caribbean Economic Association Talk given at a conference Credit constraint and human capital investment: an empirical analysis using a household budget survey (presented by Flavia Chein and Cristine Pinto) 20.11.2014 University of Sao Paulo, Brazil Ponczek Vladimir;
Annual Meeting of the Latin American and Caribbean Economic Association Talk given at a conference Trade in unemployment 20.11.2014 University of Sao Paulo, Brazil Olarreaga Marcelo;
61st Annual North American Meetings of the Regional Science Association International Talk given at a conference Credit constraint and human capital investment: an empirical analysis using a household budget survey (presented by Flavia Chein and Cristine Pinto) 11.11.2014 Washington D.C., United States of America Ponczek Vladimir;
Lames 2014 Talk given at a conference Child labor and learning 11.11.2014 Sao Paulo, Brazil Ponczek Vladimir;
Seminar CEPII Individual talk Trade in Unemployment 04.11.2014 CEPII, France Olarreaga Marcelo;
Research seminar Al Qasimi Foundation for Policy Research Individual talk Trade and labor market outcomes in developing countries 21.10.2014 Al Qasimi Foundation for Policy Research, United Arab Emirates Depetris Chauvin Nicolas;
DEGIT XIX Talk given at a conference Trade and long term unemployment: a quantitative assessment 26.09.2014 Vanderbilt University, United States of America Olarreaga Marcelo;
17th World Congress of the International Economic Association Talk given at a conference Transport Infrastructure, Urbanization and Shipping Costs: An Analysis of the the effects of an exogenous transport cost reduction on regional development (by Flavia Chein and Cristine Pinto) 06.06.2014 King Hussein Bin Talal Convention Center, Jordan Ponczek Vladimir;
DEEP seminar, Université de Lausanne Individual talk Trade in Unemployment (presented by Frédéric Robert-Nicoud) 28.05.2014 Université de Lausanne, Switzerland Olarreaga Marcelo;


Knowledge transfer events

Active participation

Title Type of contribution Date Place Persons involved
Informal work and trade Workshop 03.07.2015 Universidad Mayor de San Andres, Bolivia Milet Emmanuel; Ponczek Vladimir;
Launch of R4D project on Globalization and Labor Market Outcomes in Developing Countries Workshop 24.04.2015 University of Geneva, Switzerland Ponczek Vladimir; Depetris Chauvin Nicolas; Olarreaga Marcelo;
WTO Public Forum Talk 01.12.2014 World Trade Organization, Switzerland Olarreaga Marcelo;
103RD SESSION OF THE INTERNATIONAL LABOR CONFERENCE Talk 11.06.2014 International Labor Organization, Switzerland Olarreaga Marcelo;


Self-organised

Title Date Place
Trade and Employment in Developing Countries 02.09.2015 ILO Headquarters, Switzerland

Communication with the public

Communication Title Media Place Year
Media relations: radio, television Radio interview of Marcelo Olarreaga on Trade in Africa Voice of America International 2016
Media relations: radio, television GABRIEL ULYSSEA COMMENTS IN A SPECIAL REPORT ON INFORMALITY IN BRAZIL Globo TV International 2015
Media relations: radio, television Gabriel Ulyssea discusses the evolution of unemployment in Brasil Globo TV International 2014

Associated projects

Number Title Start Funding scheme
171177 Trade and Labor Market Outcomes in Developing Countries 01.02.2018 r4d (Swiss Programme for Research on Global Issues for Development)

Abstract

The objective of this project is to thoroughly analyze the challenges and opportunities created by globalization in developing countries. The emphasis will be on the effects of international trade in domestic labor market outcomes, that is, the creation of employment opportunities both in the formal and informal sector, the effects on unemployment and the impact on wages. We will also assess the subsequent impact on poverty and inequality. The research also seeks to identify the policies that would moderate the negative effects of globalization and maximize its benefits. We will study the role played by skill development policies, the provision of transport infrastructure, labor market reforms, and export promotion policies. The work program is organized in six modules: Module 1 - Global Trade Reforms with Labor Mobility Costs, Module 2 - Wages and Employment Gains from Exports: Evidence from Developing and Low-Income Countries, Module 3 - Trade and Unemployment in Developing Countries, Module 4 - Trade and Informal Labor Markets in Developing Countries, Module 5 - Making Globalization more Inclusive in Developing Countries: The Role of Skills Development, Transport Infrastructure and Export Promotion Policies in Employment and Wages, and Module 6 - Policy Lessons: How can employment and trade policies maximize the opportunities and cope with the risks of globalization in developing countries?
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