Trade, entreprises and labour markets: diagnostic and firm level assessment II (ASSESS)

Although trade is responsible for contributing to economic growth, it has distributional consequences. In emerging markets and developing economies, trade has created employment opportunities for many low skilled workers, including many entering the labour market for the first time, such as women, migrants and young people (ILO and WTO, 2017; Hou et al. 2017). Trade liberalization has also enhanced productivity growth and export diversity through greater participation in GVCs (Kowalski et al., 2015). However, trade liberalization can also lead to an increase in the size of the informal economy owing to import competition and low inter-regional labour mobility. (ILO, 2017; and Dix-Carneiro and Kovak, 2015). Additionally, many jobs are at the bottom of global supply chains—where competition is based mainly on low wages and poor working conditions with limited potential for economic and social mobility (Harrison and Scorse, 2010; Ngai and Chan, 2012; ILO, 2013). This project focuses on the implementation of diagnostic tools to assess the effect of trade on labour markets at the sectoral and firm level in two countries (Mexico and Viet Nam). The diagnostic tools have three purposes. The first purpose is to identify key labour market indicators linked to trade openness and trade agreements. The second purpose is to examine the links between those indicators and trade at the macro level. Finally, these tools assess methodologies at the macroeconomic and enterprise level on the effects of trade on firm performance and workers, taking into account the characteristics of both. The project outcomes will help to contribute to more effective and inclusive monitoring and implementation of trade and labour market policy at the country level to promote decent and productive work.

Project symbol

GLO/19/13/EUR

Admin unit

RESEARCH

Start date

01/02/2020

End date

31/10/2021

Total allocation

192519

Total expenditure

Status

Closed

180242

Development Partners

European Commission, DG Employment and Social Affairs

Country/Countries

Global

Outcomes

Outcome 3: Economic, social and environmental transitions for full, productive and freely chosen employment and decent work for all