Trade liberalization and unemployment: Theory and evidence from India

摘要: Abstract A widely held view among the public is that trade liberalization increases unemployment. Using state and industry-level unemployment protection data from India, we find no evidence of any increasing effect reforms. In fact, our state-level analysis reveals urban declines with in states flexible labor markets larger employment shares net exporter industries. Moreover, indicates workers industries experiencing greater reductions were less likely to become unemployed, especially export Our results can be explained within a theoretical framework incorporating search-generated some institutional features Indian economy.