The labour market effects of applied service regimes and service sector reforms

Abstract

AbstractThis article offers novel insights into the modal and sectoral characteristics of trade in services that may exert an influence on the redistributive properties of liberalization in service trade and investment. It uses descriptive statistics, and econometric analysis to examine the labour market effects of unilateral service regimes, drawing on data from the OECD's Services Trade Restrictiveness Index for a sample of 44 OECD and non‐OECD countries and 22 sectors over the period 2014–16. Whereas the findings suggest that the unilateral liberalization of services is not associated with net labour displacement effects, the authors call for empirical evidence, based on improved data sources, for a fuller understanding of this issue.