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Long-Run Effects of Trade Liberalization on Local Labor Markets : Evidence from South Africa

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  • Bastos,Paulo S. R.
  • Santos Villagran,Nicolas Eduardo

Abstract

This paper uses municipal-level data from South Africa for the period 1996–2011 to estimate the medium to long-run effects of trade liberalization on local labor markets. It finds that local labor markets that were more exposed to tariff cuts tended to experience slower growth in employment and income per capita than less exposed regions. The longer-term effects of trade liberalization on regional earnings are stronger than the medium-term effects, and tend to be more pronounced among municipalities that included the former homelands.

Suggested Citation

  • Bastos,Paulo S. R. & Santos Villagran,Nicolas Eduardo, 2021. "Long-Run Effects of Trade Liberalization on Local Labor Markets : Evidence from South Africa," Policy Research Working Paper Series 9686, The World Bank.
    • Handle: RePEc:wbk:wbrwps:9686
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    References listed on IDEAS

    as
    1. Petia Topalova, 2010. "Factor Immobility and Regional Impacts of Trade Liberalization: Evidence on Poverty from India," American Economic Journal: Applied Economics, American Economic Association, vol. 2(4), pages 1-41, October.
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    4. Rafael Dix-Carneiro & Brian K. Kovak, 2017. "Trade Liberalization and Regional Dynamics," American Economic Review, American Economic Association, vol. 107(10), pages 2908-2946, October.
    5. Paulo Bastos & Joana Silva & Rafael Proença, 2016. "Exports and Job Training," Review of International Economics, Wiley Blackwell, vol. 24(4), pages 737-756, September.
    6. Erten, Bilge & Leight, Jessica & Tregenna, Fiona, 2019. "Trade liberalization and local labor market adjustment in South Africa," Journal of International Economics, Elsevier, vol. 118(C), pages 448-467.
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    More about this item

    Keywords

    International Trade and Trade Rules; Rural Labor Markets; Labor Markets; Educational Sciences; Trade and Multilateral Issues; Mining&Extractive Industry (Non-Energy);
    All these keywords.

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