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Impact of trade reforms in Tunisia on the elasticity of labour demand

Author

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  • Rim Ben Ayed Mouelhi
  • Monia Ghazali

Abstract

The impact of trade reforms on the labour market may transit through many channels. One of these is the effect on labour demand elasticity. No consensus has been established yet in the empirical literature regarding this relationship. This paper decomposes labour into skilled and unskilled categories in order to analyse the effects of trade policies on labour demand elasticities by skill in Tunisia. We use dynamic panel techniques to estimate a model of employment determination which incorporates the effects of trade and takes into account the delay of labour adjustment. Our database covers 529 Tunisian firms from 6 manufacturing sectors over the period 1997–2002. Results suggest that a decrease in trade protection in Tunisia increases the elasticity of unskilled labour demand while it contributes to reduce the elasticity of skilled labour demand.

Suggested Citation

  • Rim Ben Ayed Mouelhi & Monia Ghazali, 2013. "Impact of trade reforms in Tunisia on the elasticity of labour demand," International Economics, CEPII research center, issue 134, pages 78-96.
    • Handle: RePEc:cii:cepiie:2013-q2-134-5
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    Citations

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    Cited by:

    1. Nchofoung, Tii N., 2022. "Trade shocks and labour market resilience in Sub-Saharan Africa: Does the franc zone response differently?," International Economics, Elsevier, vol. 169(C), pages 161-174.
    2. Mourad ZMAMI, 2017. "Libéralisation commerciale et investissement privé : une analyse en données de panel pour les entreprises manufacturières en Tunisie," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 45, pages 79-97.
    3. Lanouar Charfeddine & Zouhair Mrabet, 2015. "Trade liberalization and relative employment: further evidence from Tunisia," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 5(1), pages 173-202, June.

    More about this item

    Keywords

    Trade liberalisation; Trade and labour market interactions; Skills; Labour demand elasticities; Tunisia;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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