The Impact of Trade Openness on Labor Force Participation Rate

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Pilvar, Hanifa | 2016

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 48746 (44)
University: Sharif University of Technology
Department: Management and Economics
Advisor(s): Madanizadeh, Ali
Abstract:
In this article we investigate the impact of trade openness on labor force participation rate. We use tariff rate as the main indicator of trade openness and we employ the number of regional trade agreements of neighbouring countries to diminish the endogeneity of the tariff rate variable. The results of the article show that the correlation of tariff rate and participation rate is negative and significant. Moreover, this correlation is robust controling for different variables and using various regression specifications. 1 percentage point decrease in tariff rate is correlated with 2-3 percentage point increase in participation rate and this relationship attenuates in the medium-run
Keywords:
Trade ; Trade Libralization ; Participation ; International Trade ; Labar Force Participation Rate

No TOC