Services trade and labour market outcomes in the United Kingdom
Services trade has become increasingly important, yet its impact on employment has
been understudied at present. This paper uses fine-grained data on firm- and worker-level
information to shed light on the impact of services trade on employment and wages
in the United Kingdom. It finds that firms can benefit from services trade, through
increased employment, production and productivity. On average, workers’ wages are
also positively impacted by increased services trade. The findings suggest that services
imports enhance female wages more than those of males, thereby contributing to narrow
the gender wage gap. They also suggest that reduction of services trade barriers in
foreign markets with which the United Kingdom trades coincides with higher wages for
employees of trading firms in the United Kingdom.
Published on December 03, 2020
In series:OECD Trade Policy Papersview more titles