PREPARING UZBEKISTAN’S LABOUR FORCE FOR WTO INTEGRATION: RISKS AND POLICY DIRECTIONS
Keywords:
Uzbekistan's accession to the WTO, economic integration, trade liberalization risks, labor-market adjustment, sectoral reallocation, labour marketAbstract
This article identifies the key risks in labor markets associated with Uzbekistan's accession to the World Trade Organization (WTO). While deeper trade integration typically enhances national productivity, as domestic industries adjust and reallocate resources toward sectors where the country holds a comparative advantage, trade liberalization also comes with short-term labor-market risks. These risks, associated with the sectoral reallocation of the workforce, include potential worker displacement due to import competition (particularly in low-productivity sectors), wage stagnation, deepening informality, and widening skill mismatches. Based on descriptive data we identify risks and propose targeted policies designed to smooth these short-term disruptions in labor markets.
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