Labor Market Effects of Trade and FDI: Recent Advances and Research Gaps

35 Pages Posted: 27 Dec 2010

See all articles by Michael Pflüger

Michael Pflüger

University of Passau; IZA Institute of Labor Economics; German Institute for Economic Research (DIW Berlin)

Uwe Blien

Institute for Employment Research (IAB); IZA Institute of Labor Economics

Joachim Moeller

Government of the Federal Republic of Germany - Institute for Employment Research (IAB); University of Regensburg; IZA Institute of Labor Economics

Michael Moritz

Institute for Employment Research (IAB)

Abstract

This paper pursues three aims. First, we provide a review of current theoretical advances which pertain to the relationship between trade, FDI and labor markets. We do so under the following (not mutually exclusive) headings: (1) slicing-up the value added chain and the turn to a task-based approach, (2) firm heterogeneity and labor markets, (3) complex offshoring (integration) and sourcing strategies and (4) location of firms and labor markets. Second, we overview existing empirical work covering the labor market effects of trade and FDI. Finally, we identify and summarize the existing research gaps and thereby we highlight promising avenues for future research.

Keywords: offshoring, outsourcing, FDI, trade, labor markets, agglomeration

JEL Classification: F16, F23, R12, J60

Suggested Citation

Pflüger, Michael and Blien, Uwe and Moeller, Joachim and Moritz, Michael, Labor Market Effects of Trade and FDI: Recent Advances and Research Gaps. IZA Discussion Paper No. 5385, Available at SSRN: https://ssrn.com/abstract=1731189 or http://dx.doi.org/10.2139/ssrn.1731189

Michael Pflüger (Contact Author)

University of Passau ( email )

Innstrasse 27
Passau, 94032
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

German Institute for Economic Research (DIW Berlin)

Mohrenstrasse 58
Berlin, 10117
Germany

Uwe Blien

Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Joachim Moeller

Government of the Federal Republic of Germany - Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany

University of Regensburg

93040 Regensburg
D-93040 Regensburg, 93053
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Michael Moritz

Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany

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