Trade exposure is traditionally seen as key to job creation and poverty reduction, but its efficacy is questioned amid global labor market upheavals and protectionist trends. Drawing on six underlying studies, this report uses disaggregated data from 1995 to 2019 to explore the nuanced impact of trade on jobs. Specifically, it investigates the impact of trade exposure on job creation, labor earnings, productivity, and job quality across countries with varying income levels. It finds that trade exposure, particularly in exports and global value chains, correlates with increased employment, especially in manufacturing where it is also associated with higher female workforce participation. Higher trade exposure is associated with increased labor earnings, with wage inequality decreasing in low- and middle-income countries due to global value chain integration. Labor productivity improves with export growth, especially benefiting unskilled workers in low-tech manufacturing and agriculture in developing countries. Job quality is also enhanced with more exports, transitioning to salaried employment positions and higher value-added activities outside of production. However, the report notes that trade exposure does not significantly boost job numbers or reduce earnings inequality in low-income countries. It also finds that the positive effects of trade on employment, earnings, and productivity have diminished following the global financial crisis of 2007. These findings offer insights into future job and trade policy strategies.
| Repository name | URI |
|---|---|
| Reproducible Research Repository (World Bank) | https://reproducibility.worldbank.org |
Paper exhibits were reproduced on a computer with the following specifications:
• OS: Windows 10 Enterprise
• Processor: Intel(R) Xeon(R) Gold 6226R CPU @ 2.90GHz, 2900 Mhz, 16 Core(s), 16 Logical Processor(s)
• Memory available: 147 GB
• Software version: Stata 18MP
~60 minutes runtime
All data sources are publicly available, but not all are included in the reproducibility package. However, the replicators used data provided directly by the authors and did not verify if the publicly available data matches the data provided by the authors.
| Author | Affiliation | |
|---|---|---|
| Maryla Maliszewska | World Bank | mmaliszewska@worldbank.org |
| Deborah Winkler | World Bank | dwinkler2@worldbank.org |
| Luis Alejandro Aguilar Luna | El Colegio de México | laguilar@colmex.mx |
This report, Leveraging Trade for More and Better Jobs, was prepared by Maryla Maliszewska and Deborah Winkler (co-Task Team Leaders) under the overall guidance of Mona Haddad, Director for Trade, Investment, and Competitiveness, Sébastien Dessus, Practice Manager of the Global Trade and Regional Integration Unit, and Antonio Nucifora (former Practice Manager). The authors are grateful to Martín Rama for his valuable advice and support with the drafting of the final report. The work was financed by the Umbrella Facility for Trade Trust Fund. This report presents an overview of underlying research produced by the following core team members: Luis Aguilar Luna, Hagen Kruse, Piotr Lewandowski, Karol Madón, Israel Osorio-Rodarte, Brenda Samaniego de la Parra, Ben Shepherd, Eugenia Suarez, Emmanuel Vazquez, and Gaaitzen de Vries. Valuable contributions were made by Erwin Corong, Malin Linnea Sofia Ed, Elcin Koten, Hans Lofgren, Dominique van der Mensbrugghe, Matteo Morgandi, and Wen Jean Yuan. The authors extend their gratitude to Bruce Ross-Larson and Chris Wellisz for their outstanding editorial support, Na Kyoung Kang for providing the design, and Youjin Choi for her helpful guidance on the publication process. Tanya Cubbins provided exceptional administrative assistance. The authors would also like to thank the participants of the two authors’ workshops who served as chairs, discussants, and presenters, including Erhan Artuç, Paulo Bastos, Eddy Bekkers, Claudia Berg, Maxi Cali, Thomas Farole, Ana Fernandes, Gladys Lopez-Acevedo, Douglas Nelson, Bob Rijkers, Raymond Robertson, Daria Taglioni, Enxhi Tresa, and Jorge Tudela Pye. In addition, the authors are grateful to the World Bank peer reviewers who provided useful comments that considerably helped to improve the quality of the report: Erhan Artuc, Mary Hallward-Driemeier, Claire Hollweg, Dino Merotto, and Nithin Umapati. Additional helpful comments were received from Aart Kraay, Daniel Lederman, Gladys Lopez-Acevedo, Gaurav Nayyar, and Shu Yu. Finally, the work benefited from useful discussions with Paul Brenton, Carlos Castelan, Harry Edmund Moroz, Jakob Engel, Bernard Hoekman, and Hernan Winkler.
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| Location | Code |
|---|---|
| World | WLD |
The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.
| Name | URI |
|---|---|
| Modified BSD3 | https://opensource.org/license/bsd-3-clause/ |
| Name | Affiliation | |
|---|---|---|
| Deborah Winkler | World Bank | dwinkler2@worldbank.org |
| Reproducibility WBG | World Bank | reproducibility@worldbank.org |
| Name | Abbreviation | Affiliation | Role |
|---|---|---|---|
| Reproducibility WBG | DIME | World Bank - Development Impact Department | Verification and preparation of metadata |
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