Trade and Employment From Myths to Facts - International Labour ...

APPPENDIX 3.A: TABLES
Chapter 3: Assessing the impact of trade on employment: Methods of analysis
Appendix table 3.A-2: Methods matrix
Model Factor- Partial Input- General Structural Agent Econometric Social Qualitative
content equilibrium output equilibrium CGEs based models assessment approach
substitution LP
Description Distinguishes Single market Multi-market Multi-market Multi-market Multi-market Ex-post Survey Case study
L-K intensive equilibrium Supply-side Supply- with structural with structural testing methods anecdotal
processes Demand constraints constraints of existing with
theory qualitative
assessment
Strengths Consistency Can be Compute Full integration Realistic: Heterogenous Inferential Additional Highly
with first adapted to direct plus of demand calibrated to agents hypothesis detail detailed
principles country- indirect side time series bounded testing captured
specific labour data rationality possible
constraints equirements
Weaknesses Ignores Good for small Linear; good Comparative Rigid Emergent Ambiguous Difficult to Highly
stylized sectors only for small static exercises properties causality generalize difficult to
facts changes only; Dynamic results difficult to due to OVB generalize
aggregated can often unrealistic. discern and simultaneity
only see sectors For sectors
>1% of GDP >1% of GDP
Internal validity High High Medium High Medium Very high Variable Variable Variable
External validity Low High Medium Low-medium Medium-high Low-medium Variable Medium-high Low
Data requirement Low Low Medium Very high Very high High Medium- Very high Mediumhigh
high
Low Medium Medium High High High Medium High
117