Abstract

Evaluating the impact of international trade on employment remains controversial. However, the employment balance method, intuitive in purpose and simple to use, appears to be more direct than a trade-price analysis or a general equilibrium assessment. This simplicity is only apparent, since the idea that jobs can be added to or removed from an economy by opening it up or closing it to foreign trade is specious. This paper outlines some elements of a theoretical interpretation of the employment balance and discusses empirically some of the assumptions underlying its calculation. With the static framework of this method and in a period of trade surplus the impact of globalisation through trade is limited in scope, generally promoting employment in France but disadvantageous to unskilled workers.

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