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Services trade and labour market outcomes in the United Kingdom

Author

Listed:
  • Andrea Lassmann

    (OECD)

  • Francesca Spinelli

    (OECD)

Abstract

Services trade has become increasingly important, yet its impact on employment has been understudied at present. This paper uses fine-grained data on firm- and worker-level information to shed light on the impact of services trade on employment and wages in the United Kingdom. It finds that firms can benefit from services trade, through increased employment, production and productivity. On average, workers’ wages are also positively impacted by increased services trade. The findings suggest that services imports enhance female wages more than those of males, thereby contributing to narrow the gender wage gap. They also suggest that reduction of services trade barriers in foreign markets with which the United Kingdom trades coincides with higher wages for employees of trading firms in the United Kingdom.

Suggested Citation

  • Andrea Lassmann & Francesca Spinelli, 2020. "Services trade and labour market outcomes in the United Kingdom," OECD Trade Policy Papers 243, OECD Publishing.
    • Handle: RePEc:oec:traaab:243-en
    DOI: 10.1787/62112593-en
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    Cited by:

    1. Omar Bamieh & Francesco Bripi & Matteo Fiorini, 2022. "Services trade and labor market outcomes: Evidence from Italian firms," Review of International Economics, Wiley Blackwell, vol. 30(3), pages 673-701, August.

    More about this item

    Keywords

    Employment; gender pay gap; skills; trade liberalisation; wages; worker and firm level data;
    All these keywords.

    JEL classification:

    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General

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