Friday, March 21, 2008

[IWS] ILO/WTO: TRADE & EMPLOYMENT: CHALLENGES for POLICY RESEARCH [2007]

IWS Documented News Service
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations
-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor
---------------------- Stuart Basefsky
New York, NY 10016
-------------------------------Director, IWS News Bureau
________________________________________________________________________

A joint study of the International Labour Office
and the Secretariat of the World Trade Organization

TRADE AND EMPLOYMENT: CHALLENGES FOR POLICY RESEARCH [2007]
http://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/---webdev/documents/publication/wcms_081742.pdf
[full-text, 115 pages]

[excerpt]
This study is the outcome of collaborative research between the Secretariat of the World Trade Organization (WTO) and the International Labour Office (ILO). It addresses an issue that is of concern to both organizations: the relationship between trade and employment.

On the basis of an overview of the existing academic literature, the study provides an impartial view of what can be said, and with what degree of confidence, on the relationship between trade and employment, an often contentious issue of public debate. Its focus is on the connections between trade policies, and labour and social policies and it will be useful for all those who are interested in this debate: academics and policy-makers, workers and employers, trade and labour specialists.

CONTENTS
EXECUTIVE SUMMARY 1
A. Introduction 13
B. Trade flows and employment : the curent context 14
C. Trade and employment : theory and evidence 19
1. Trade and income levels 20
2. Trade, job destruction, job creation and unemployment: what theory tells us 24
3. The evidence: trade and (un)employment 30
D. Trade and ine quality 38
1. Trade and inequality: what theory tells us 40
(a) Trade and the relative demand for different types of labour 40
(b) Trade, FDI and the possibility to substitute domestic workers by foreign workers 42
2. The evidence: trade and wage inequality 45
3. The evidence: trade and income inequality 50
4. The evidence: trade, FDI and the possibility to substitute domestic workers by foreign workers 52
(a) Does globalization affect labour demand elasticities? 52
(b) Globalization, insecurity and the bargaining power of workers 54
E. The role of policy -makers 55
1. Labour market institutions 56
(a) Insuring workers against adverse professional events 57
(b) Facilitating transition following trade reform 60
(i) Social protection and the potential role of the international community 61
(ii) Active labour market policies 63
(c) Freedom of association and collective bargaining 65
(d) Trade reform and the informal economy in developing countries 69
2. Redistribution policies 73
3. Education policies 76
4. Other policy areas 80
(a) Supply response in developing countries 80
(b) The role of financial markets for efficiency and stability 83
(c) The pace of trade liberalization 84
F. Conclusions 85
REFERENCES 91
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.

****************************************
Stuart Basefsky                   
Director, IWS News Bureau                
Institute for Workplace Studies 
Cornell/ILR School                        
16 E. 34th Street, 4th Floor             
New York, NY 10016                        
                                   
Telephone: (607) 255-2703                
Fax: (607) 255-9641                       
E-mail: smb6@cornell.edu                  
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