Labour market outcomes: Trends and analytical framework

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This section aims to put the discussion of the labour market effects of trade and technology into perspective. A narrow focus on these effects may give the misleading impression that trade and/or technology are the main determinants of employment or wages. As explained in this section, however, levels of employment or unemployment and of wages are largely determined by how the labour market works. In other words, the effects of technology or trade on labour market outcomes depend, to a large extent, on institutional conditions in the labour market, concomitant economic changes and the diversification of employment opportunities when shocks occur.

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