1887

OECD Trade Policy Papers

This series is designed to make available to a wider readership selected trade policy studies prepared for use within the OECD.

NB. No. 1 to No. 139 were released under the previous series title OECD Trade Policy Working Papers.

English

Services trade and labour market outcomes in the United Kingdom

Services trade has become increasingly important, yet its impact on employment has been understudied at present. This paper uses fine-grained data on firm- and worker-level information to shed light on the impact of services trade on employment and wages in the United Kingdom. It finds that firms can benefit from services trade, through increased employment, production and productivity. On average, workers’ wages are also positively impacted by increased services trade. The findings suggest that services imports enhance female wages more than those of males, thereby contributing to narrow the gender wage gap. They also suggest that reduction of services trade barriers in foreign markets with which the United Kingdom trades coincides with higher wages for employees of trading firms in the United Kingdom.

English

Keywords: gender pay gap, skills, Employment, worker and firm level data, trade liberalisation, wages
JEL: F16: International Economics / Trade / Trade and Labor Market Interactions; J31: Labor and Demographic Economics / Wages, Compensation, and Labor Costs / Wage Level and Structure; Wage Differentials; C26: Mathematical and Quantitative Methods / Single Equation Models; Single Variables / Single Equation Models: Single Variables: Instrumental Variables (IV) Estimation; F13: International Economics / Trade / Trade Policy; International Trade Organizations; J40: Labor and Demographic Economics / Particular Labor Markets / Particular Labor Markets: General
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