Date(s) - 04/01/2019
12:00 pm - 1:00 pm
Andrew G. Clark Building
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The Brown Bag Seminar Series offers current ECON graduate students the opportunity to present ongoing research or to workshop new ideas. The seminars are held on Mondays from 12:00-1:00pm in Clark C307 and are open to everyone.
April 1st’s presenter is ECON PhD. graduate student Arpan Ganguly.
The title of his presentation is: “Labor Market Outcomes in Global Value Chains: Effects of Trade Integration on Quality of Employment in Developing Economies.”
Abstract: The export-led industrialization model has had significant implications for the functional distribution of income and labor market conditions (embodied in wages, working conditions, and economic security of the workforce) among countries in the global South. Contemporary studies have identified trade integration as having significant effects on ‘quality’ of employment – growing wage inequality by skill type or coexistence of multiple models of labor relations within a production chain or network. This paper presents a conceptual macroeconomic framework and principal component analysis that links trade integration with structures of economic growth and labor market conditions, by identifying distinct demand and supply side channels. Further, 2SLS panel data model is used to show that after controlling for the effect on prices and labor productivity, trade integration is associated with growing wage inequality by skill type in the manufacturing sector and falling labor shares in income in developing economies. This paper argues that contemporary patterns of global trade is associated with growing disparity in employment outcomes (qualitatively) in many developing economies, in turn increasing economic insecurity and vulnerability for labor.