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
- Citation
- “ Shepherd, Ben ; Winkler, Deborah . 2023 . Leveraging Trade for More and Better Job Opportunities in Developing Countries: A Framework for Policy . Policy Research Working Papers; 10637 . © World Bank, Washington, DC . http://hdl.handle.net/10986/40767 License: CC BY 3.0 IGO . ”
- Collection(s)
- Policy Research Working Papers
- DOI
- http://dx.doi.org/10.1596/1813-9450-10637
- Identifier externaldocumentum
- 34212706
- Identifier internaldocumentum
- 34212706
- Published in
- United States of America
- RelationisPartofseries
- Policy Research Working Papers; 10637
- Report
- WPS10637
- Rights
- CC BY 3.0 IGO
- Rights Holder
- World Bank
- Rights URI
- https://creativecommons.org/licenses/by/3.0/igo/
- UNIT
- EFI-MTI-TIC-Trade and RI (ETIRI)
- URI
- https://openknowledge.worldbank.org/handle/10986/40767
- date disclosure
- 2023-12-11
- theme
- Inclusive Growth,Job Creation,Trade Facilitation,Economic Policy,Trade Policy,Green Growth,Economic Growth and Planning,Private Sector Development,Job Quality,Jobs,Trade