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Trade and Employment: From Myths to Facts Slaughter, M.J. 2001. “International trade and labor-demand elasticities”, in Journal of International Eco nomics, Vol. 54, No. 1, pp. 27-56. Solow, R.M. 1956. “A contribution to the theory of economic growth”, in The Quarterly Journal of Economics, Vol. 70, No. 1, pp. 65-94, Feb. Srinivasan, T.N. 1994. “Data base for development analysis: An overview”, in Journal of Development Economics, Vol. 44, No. 1, pp. 3-27, June. Taylor, L. 1979. “Macro models for developing countries”, Economic Handbook Series (McGraw-Hill). Taylor, L. 1990. Socially relevant policy analysis: Structuralist computable general equilibrium models for the developing world (MIT Press). Taylor, L.; von Arnim, R. 2006. Modelling the impact of trade liberalisation: A critique of computable general equilibrium models (Oxfam International Research Report). Thierfelder, K.; Shiells, C. 1997. “Trade and labor market behavior”, chapter in J.F. Francois; K.A. Reinert (eds): Applied methods for trade policy analysis: A handbook (Cambridge University Press). Trochim, W.M. 2006. Qualitative research methods (Web Center for Social Research Methods). Weinberg, D. 2002. Qualitative research methods (Blackwell Publishers). Winchester, N. 2008a. “Trade and rising wage in equality: What can we learn from a decade of computable equilibrium analysis?”, chapter in Globalisation and labour market adjustment (Palgrave MacMillan). Winchester, N. 2008b. “Searching for the smoking gun: Did trade hurt unskilled workers?”, in Economic Record, Vol. 84, No. 256, pp. 141-156, June. Wood, A. 1997. “Openness and wage inequality in developing countries: The Latin American challenge to East Asian conventional wisdom”, in World Bank Economic Review, Vol. 11, No. 1, pp. 33-58, Jan. World Bank. 2009. World Development Indicators 2009 (Washington, DC). 124
TRADE AND THE INFORMAL ECONOMY 4.1 INTRODUCTION By Anushree Sinha 1 4 It was generally understood during the 1960s and 1970s that, with economic growth, the informal economy would shrink. But despite strong global growth that coincided with a massive increase in international trade, many jobs in developing countries remain in the informal economy. The share of employment in the informal economy has been persistent in many developing countries over recent decades and even increased in some regions. On average, 60 per cent of employment in developing countries is in the informal sector. Research findings from the 1990s and 2000s indicate that globalization and trade reforms have shown a tendency to encourage precarious forms of work. In contrast to developed countries’ experiences, the formal sector in developing countries has not been able to absorb informal workers and production processes as expected. In fact, many studies suggest that globalization and trade reforms lead to competition in the formal sector, which may result in a reduction in formal employment, at least in the short run. Today’s global value chains combine various modes of production, such as traditional, semi-industrial and fully industrial production mechanisms. The downside of such a system is that processes can be outsourced into the informal sector and larger firms tend to capture a major part of capital, leaving little for informal enterprises, which generally continue to remain small scale and less productive. Moreover, workers in the informal economy are 1 I am grateful for the comments received at the Expert meeting on Assessing and Addressing the Effects of Trade on Employment held at the ILO, Geneva, in December 2009; especially from Marco Fugazza and Henrik Huitfeldt. Thanks are also due to the anonymous reviewers who provided valuable comments on the chapter. I am also thankful to Susmita Dasgupta for her editorial support and input. Finally, I would like to acknowledge Sadhana Singh for providing technical support in writing this chapter. 125
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Trade and Employment From Myths to
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PREFACE Trade negotiations -bilater
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Trade and Employment: From Myths to
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EDITORS AND CONTRIBUTORS EDITORS Ma
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ACKNOWLEDGEMENTS The editors wish t
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NEW EVIDENCE ON TRADE AND EMPLOYMEN
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Chapter 2: New evidence on trade an
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Region Annualized percentage change
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Region 1980 1985 1990 1995 2000 200
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Figure 2.4.b: Long-run association
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20 See Harrison and Rodriguez-Clare
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ASSESSING THE IMPACT OF TRADE ON EM
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Chapter 3: Assessing the impact of
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Figure 5.1: Description of gender i
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Chapter 5: Gender aspects of trade
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A third view is that the type of jo
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REFERENCES Chapter 5: Gender aspect
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