Impact of U.S. Market Access on Local Labor Markets in Vietnam
This paper examines the impact of U.S. market access on local labor markets in a developing country, Vietnam. The study finds that following the implementation of the Vietnam–United States bilateral trade agreement in December 2001, manufacturing employment increased in provinces that were more exposed to U.S. tariff cuts. In those provinces, employment also increased in many service sectors, reflecting strong spillovers of job gains. The new job opportunities have attracted labor from agriculture, thus reducing agricultural employment. The paper examines three possible channels of job gain spillovers, namely, demand, production, and real estate. Although there is evidence for all three channels, the demand channel is the most important.
| Main Authors: | , |
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| Format: | Working Paper biblioteca |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018-03
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| Subjects: | BILATERAL TRADE AGREEMENT, EMPLOYMENT, EXPORTS, MARKET ACCESS, LABOR MARKET, PROPAGATION, IMPORT COMPETITION, MANUFACTURING EMPLOYMENT, JOB CREATION, SPILLOVER EFFECT, SERVICES SECTOR, REAL ESTATE, PRODUCTIVITY, |
| Online Access: | http://documents.worldbank.org/curated/en/374231520955330537/Impact-of-U-S-market-access-on-local-labor-markets-in-Vietnam https://hdl.handle.net/10986/29460 |
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| Summary: | This paper examines the impact of U.S.
market access on local labor markets in a developing
country, Vietnam. The study finds that following the
implementation of the Vietnam–United States bilateral trade
agreement in December 2001, manufacturing employment
increased in provinces that were more exposed to U.S. tariff
cuts. In those provinces, employment also increased in many
service sectors, reflecting strong spillovers of job gains.
The new job opportunities have attracted labor from
agriculture, thus reducing agricultural employment. The
paper examines three possible channels of job gain
spillovers, namely, demand, production, and real estate.
Although there is evidence for all three channels, the
demand channel is the most important. |
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