Impact of trade on labour market outcomes

This section looks at the empirical evidence on the effect of trade on wages and employment and addresses the following key questions: what is the evidence of the impact of import competition and offshoring on the level of wages and employment? What is the impact of increased market access for exports and the availability of cheaper imported inputs on employment? How can varied empirical evidence across countries be reconciled? How does the functioning of the labour market affect outcomes? How large are trade-induced adjustment costs? This section focuses particularly on wages and employment because research on other dimensions of labour markets, such as employment stability and security, is much less developed due to lack of cross-country data and thus does not allow for a comparison of how trade and technology play out on these other variables.