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Labor Market Effects of Trade and FDI: Recent Advances and Research Gaps

Michael P. Pflüger (), Uwe Blien (), Joachim Möller () and Michael Moritz ()
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Michael P. Pflüger: University of Würzburg

No 5385, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper pursues three aims. First, we provide a review of current theoretical advances which pertain to the relationship between trade, FDI and labor markets. We do so under the following (not mutually exclusive) headings: (1) slicing-up the value added chain and the turn to a task-based approach, (2) firm heterogeneity and labor markets, (3) complex offshoring (integration) and sourcing strategies and (4) location of firms and labor markets. Second, we overview existing empirical work covering the labor market effects of trade and FDI. Finally, we identify and summarize the existing research gaps and thereby we highlight promising avenues for future research.

Keywords: FDI; trade; labor markets; agglomeration; outsourcing; offshoring (search for similar items in EconPapers)
JEL-codes: F16 F23 R12 J60 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2010-12
New Economics Papers: this item is included in nep-int, nep-lab and nep-mic
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Published in revised form in: Jahrbücher für Nationalökonomie und Statistik, 2013, 233 (1), 86-116

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