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The Evolution of Tradable and Non Tradable Employment: Evidence from France

Author

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  • Philippe Frocrain

    (CERNA i3 - Centre d'économie industrielle i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

  • Pierre-Noël Giraud

    (CERNA i3 - Centre d'économie industrielle i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

Abstract

The objective of this paper is to investigate the evolution of employment in the tradable and non-tradable sectors in France over 1999-2015. We find that tradable employment makes up the minority of French employment and has decreased over this period, dropping from 27.5% to 23.6% of total employment. There has been significant restructuring within the sector: tradable services jobs now make up the majority of tradable jobs and have grown sharply, while employment has declined in the rest of the tradable sector (manufacturing, agricultural and mining industries). We also identify a large wage and labor productivity gap between tradable and non-tradable sectors. Finally, we examine the distribution of tradable jobs across French local labor markets, and how their development affects non-tradable employment locally. Using the empirical approach developed by Moretti (2010), we find that for every 100 tradable jobs created in a French employment area between 2008 and 2016, 80 additional non-tradable jobs were created within the same area. JEL Classification: F16, F66, O52, R15, R23

Suggested Citation

  • Philippe Frocrain & Pierre-Noël Giraud, 2019. "The Evolution of Tradable and Non Tradable Employment: Evidence from France," Post-Print hal-01981428, HAL.
    • Handle: RePEc:hal:journl:hal-01981428
    DOI: 10.24187/ecostat2018
    Note: View the original document on HAL open archive server: https://hal.science/hal-01981428v1
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    More about this item

    Keywords

    tradable; non-tradable; globalization; multiplier; local labor market; French employment structure;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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