Trade and labor markets are intimately connected. This connection presents governments with a dual economic challenge that cannot be resolved without social compromise: maximizing aggregate gains but minimizing disaggregated costs, which can include losses to individuals and groups. This paper draws on recent research to develop a framework for thinking rigorously about these linkages. It then examines aspects of policy design and implementation that relate directly to labor market outcomes. It discusses three sets of policies that are required to help resolve the government’s dual challenge in a sustainable way: policies for people, sectors, and places. The framework includes policies to mitigate losses and facilitate movement of workers, classical trade policies, and a broad set of complementary policies that reduce trade costs. It also looks at the need for fiscal space to implement policies, and highlights the tension between tariff reductions and trade-related taxes, especially in countries where trade taxes account for a significant proportion of total government revenue.
Authors
- DOI
- https://dx.doi.org/10.1596/1813-9450-10637
- Disclosure Date
- 2023/12/11
- Disclosure Status
- Disclosed
- Doc Name
- Leveraging Trade for More and Better Job Opportunities in Developing Countries : A Framework for Policy
- Originating Unit
- Off of Sr VP Dev Econ/Chief Econ (DECVP)
- Product Line
- Advisory Services & Analytics
- Published in
- United States of America
- Rel Proj ID
- 1W-Leveraging Trade For More And Better Job Opportunities In Devel -- P178538
- Sector
- Trade
- Series Name
- Policy Research working paper ; no. WPS 10637;
- TF No/Name
- TF0B7806-Leveraging trade for more and better job opportunities in developing co
- Theme
- Inclusive Growth,Job Creation,Trade Facilitation,Economic Policy,Trade Policy,Green Growth,Economic Growth and Planning,Private Sector Development,Job Quality,Jobs,Trade
- Unit Owning
- EFI-MTI-TIC-Trade and RI (ETIRI)
- Version Type
- Final
- Volume No
- 1