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Trade liberalisation, rent sharing and wage inequality in Tunisia, 1998-2002

Ghazali, Monia (2010), Trade liberalisation, rent sharing and wage inequality in Tunisia, 1998-2002, 2ème colloque du GDRI DREEM : "Innovation et développement dans les pays méditerranéens", 2010-12, Le Caire, Égypte

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Type
Communication / Conférence
Date
2010
Conference title
2ème colloque du GDRI DREEM : "Innovation et développement dans les pays méditerranéens"
Conference date
2010-12
Conference city
Le Caire
Conference country
Égypte
Pages
39
Metadata
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Author(s)
Ghazali, Monia
Abstract (EN)
This paper attempts to empirically explore the effects of trade liberalization process in Tunisia on average real wages and wage inequality, via industry rents. For this purpose, we adopt, following Revenga (1997), a flexible model of wage setting that can accommodate both the presence of rent-sharing behavior and competitive wage determination. The rent- sharing mechanism may affect firms’ employment response to trade liberalization. Indeed, bargaining workers could accept a reduction in wages subsequent to rent dissipation in order to preserve jobs. We assess this hypothesis by regressing a labor demand function derived from a model of employment determination that integrates trade impacts, following Mouelhi (2007).
Subjects / Keywords
Tunisia; North Africa; labor demand; unskilled workers; skilled workers; rent sharing; trade openness
JEL
F43 - Economic Growth of Open Economies
F41 - Open Economy Macroeconomics
E23 - Production
F16 - Trade and Labor Market Interactions
E24 - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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