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

Paulo S. R. Bastos and Nicolas Eduardo Santos Villagran

No 9686, Policy Research Working Paper Series from The World Bank

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.

Keywords: International Trade and Trade Rules; Rural Labor Markets; Labor Markets; Educational Sciences; Trade and Multilateral Issues; Mining&Extractive Industry (Non-Energy) (search for similar items in EconPapers)
Date: 2021-06-02
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Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:9686

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