Long‐run effects of trade liberalisation on local labour markets: Evidence from South Africa

This paper uses municipal‐level data from South Africa for the period 1996–2011 to estimate the medium to long‐run effects of trade liberalisation on local labour markets. It finds that local labour markets that were more exposed to tariff cuts tended to experience slower growth in employment and in...

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Bibliographic Details
Published in:World economy 2022-10, Vol.45 (10), p.3059-3079
Main Authors: Bastos, Paulo, Santos, Nicolas
Format: Article
Language:English
Subjects:
Earnings
Economic analysis
Employment
Free trade
Homelands
Labor
Labor market
local labour markets
long‐term effects
Markets
Regions
South Africa
trade liberalisation
Trade liberalization
trade shocks
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Summary:This paper uses municipal‐level data from South Africa for the period 1996–2011 to estimate the medium to long‐run effects of trade liberalisation on local labour markets. It finds that local labour 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 liberalisation on regional earnings are stronger than the medium‐term effects and tend to be more pronounced among municipalities that included the former homelands.
ISSN:0378-5920
1467-9701
DOI:10.1111/twec.13281