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On the Interaction Between Trade Reforms and Labor Market Regulation: Evidence from the MENA Countries' Labor Markets

Author

Listed:
  • Irène Selwaness

    (Cairo University)

  • Chahir Zaki
Abstract
Using a panel of MENA countries, this paper tries to examine the interaction between trade reforms and labor market regulations on the outcome of the labor market. The theoretical predictions of this literature show that the effects of trade liberalization in any given country are conditional on the nature of labor market regulations since trade liberalization is more likely to have a positive impact on employment and wages in countries with flexible labor markets and vice versa. Moreover, more regulated labor markets tend to have higher wages at the expense of sector wide employment. Our main findings show that labor market rigidity reduces the positive impact of trade reform on employment. While this result is stronger for females, it is not for males.

Suggested Citation

  • Irène Selwaness & Chahir Zaki, 2015. "On the Interaction Between Trade Reforms and Labor Market Regulation: Evidence from the MENA Countries' Labor Markets," Working Papers 970, Economic Research Forum, revised Nov 2015.
    • Handle: RePEc:erg:wpaper:970
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    References listed on IDEAS

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    Cited by:

    1. Nora Aboushady & Chahir Zaki, 2019. "Investment climate and Trade Margins in Egypt: Which Factors Do Matter?," Economics Bulletin, AccessEcon, vol. 39(4), pages 2275-2301.

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    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J88 - Labor and Demographic Economics - - Labor Standards - - - Public Policy

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