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Labour Market Effects of Trade Liberalisation: The Case of Mauritius

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  • Ramessur, Taruna Shalini
  • Durbarry, Ramesh

Abstract

This article uses a partial equilibrium approach to measure the impact of trade liberalisation on the demand elasticity of labour in the apparel industry in Mauritius, a sector where, in general, those in the work force are poor. The findings reveal that there is no evidence that trade liberalisation has increased the overall labour demand elasticity with respect to wages, though it has increased the demand elasticity for female workers. We further examine the relationship between trade liberalisation measures and characteristics of poor households and find that the overall results are mixed and inconclusive, probably due to the high level of data aggregation.

Suggested Citation

  • Ramessur, Taruna Shalini & Durbarry, Ramesh, 2009. "Labour Market Effects of Trade Liberalisation: The Case of Mauritius," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 10(2), pages 1-11.
    • Handle: RePEc:ags:ecjilt:54588
    DOI: 10.22004/ag.econ.54588
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    References listed on IDEAS

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    1. Shaohua Chen & Martin Ravallion, 2004. "How Have the World's Poorest Fared since the Early 1980s?," The World Bank Research Observer, World Bank, vol. 19(2), pages 141-169.
    2. Milner, Chris & Wright, Peter, 1998. "Modelling Labour Market Adjustment to Trade Liberalisation in an Industrialising Economy," Economic Journal, Royal Economic Society, vol. 108(447), pages 509-528, March.
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    Keywords

    trade liberalisation; poverty alleviation;

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