Does Trade Liberalization Increase the Labor Demand Elasticities? Evidence from Pakistan

摘要

This study measure the linkage of trade liberalization and labor demand elasticities.Using Pakistan firm-level data, spanning the course of trade liberalization, study try todetermine whether the trade liberalization increase the own price labor demandelasticities in the manufacturing sector of Pakistan. Elasticities are measure forproduction workers and non-production workers for major eleven industries at individuallevel at first and later elasticities are measured by pooling data across the industries ataggregate level. However, in most of the industries, study unable to find any empiricalsupport for the hypothesis of no relationship between trade liberalization and labordemand elasticities in case of Pakistan.