A Mapping of Labor Mobility Costs in the Developing World
AbstractEstimates of labor mobility costs are needed to assess the responses of employment and wages to a trade shock when factor adjustment is costly. Available methods to estimate those costs rely on panel data, which are seldom available in developing countries. In this paper, we propose a method to estimate mobility costs using data that is more easily obtainable worldwide. Our estimator matches observed employment flows with those flows predicted by a model of costly labor adjustment. We estimate a mapping of labor mobility costs for the developing world and we use those estimates to explore the response of labor markets (wages and employment) to trade policy.
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Bibliographic InfoPaper provided by CEDLAS, Universidad Nacional de La Plata in its series CEDLAS, Working Papers with number 0146.
Length: 49 pages
Date of creation: Jul 2013
Date of revision:
Find related papers by JEL classification:
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- J2 - Labor and Demographic Economics - - Demand and Supply of Labor
- J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-09-26 (All new papers)
- NEP-INT-2013-09-26 (International Trade)
- NEP-LAB-2013-09-26 (Labour Economics)
- NEP-LTV-2013-09-26 (Unemployment, Inequality & Poverty)
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