Indirect effects of trade shocks on Turkish local labor markets

We analyze the impact of export and import competition on local labor-market outcomes in an emerging economy, namely Turkey. We find that notable adjustments to changes in exports happen at the extensive, per-capita-employment margin and to a much smaller extend at the intensive margins such as hours worked. These changes are mainly driven by direct export exposure of regions (direct effect). We only find very limited and small labor-market effects through import competition