abstract: 'Purpose The implications of trade on developing economies have generated substantial debates with most studies focussed on ``openness in the policy{''''}. Hence, the purpose of this study is to focus on ``openness in practice{''''}. Design/methodology/approach This study uses two models and employed the vector error correction model and structural vector autoregression, first, to examine the sectoral effects; second, to investigate the efficacy of neoclassical and new trade theories; and third, to analyse the effect of trade openness shock on Nigerian labour market performance. Findings The results of the first model showed that trade openness has an adverse effect on employment and wages in both the agriculture and manufacturing sectors. Likewise, the study concludes that the new trade theory explains trade''s behaviour on employment and wages in Nigeria. The second model showed that the effect of error shock from trade openness affected wages more than employment. Research limitations/implications The study ignores the distributional effects due to unavailability of data. Practical implications The study suggested, amongst others, the need for policies mix on the labour market via a coherent set of initiatives in other to increase the competitiveness of Nigeria in the international market. Originality/value Most studies focussed on openness in policy through the channels identified in the literature. However, this study investigates these channels in ``openness in practice{''''} and investigates trade theories'' efficacy on manufacturing and agricultural sectors in Nigeria, which has been neglected in the literature.' affiliation: 'Asaleye, AJ (Corresponding Author), Landmark Univ, Econ, Omu Aran, Nigeria. Asaleye, Abiola John; Ogunjobi, Joseph Olufemi, Landmark Univ, Econ, Omu Aran, Nigeria. Ezenwoke, Omotola Adedoyin, Covenant Univ, Accounting Dept, Ota, Nigeria.' author: Asaleye, Abiola John and Ogunjobi, Joseph Olufemi and Ezenwoke, Omotola Adedoyin author-email: asaleye.abiola@lmu.edu.ng author_list: - family: Asaleye given: Abiola John - family: Ogunjobi given: Joseph Olufemi - family: Ezenwoke given: Omotola Adedoyin da: '2023-09-28' doi: 10.1108/IJSE-06-2018-0320 earlyaccessdate: JUL 2021 eissn: 1758-6712 files: [] issn: 0306-8293 journal: INTERNATIONAL JOURNAL OF SOCIAL ECONOMICS keywords: Trade openness; Wages; Employment; VAR; Nigeria; C3; F6; J21; J64 keywords-plus: 'TIME-SERIES; INNOVATION; EMPLOYMENT; IMPACT; INEQUALITY; ECONOMIES; GROWTH; STATES; INCOME; WAGES' language: English month: OCT 27 number: '11' number-of-cited-references: '59' orcid-numbers: Asaleye, Abiola John/0000-0002-8391-3774 pages: 1589-1607 papis_id: 6c2330f887b90dab80b9de82f2eeb041 ref: Asaleye2021tradeopenness researcherid-numbers: Asaleye, Abiola John/U-1385-2019 times-cited: '3' title: 'Trade openness channels and labour market performance: evidence from Nigeria' type: Article unique-id: WOS:000672824200001 usage-count-last-180-days: '1' usage-count-since-2013: '1' volume: '48' web-of-science-categories: Economics year: '2021'