Publication

This paper aims studies the effects of the globalization process on labor allocation and wage inequality in South Asia. As labor market institutions have not been subject to reform during the period under consideration, an opportunity is provided to study the labor market outcomes of trade reforms, in the absence of labor reform. The author focuses on the manufacturing sector as it is the sector most subjected to tariff and import liberalization, and finds that outcomes in South Asia are most strongly linked with world trade growth in textiles and clothing. However, labor markets have also shown resilience in adjusting to globalization processes.