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A mapping of labor mobility costs in developing countries

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  • Artuc, Erhan
  • Lederman, Daniel
  • Porto, Guido

Abstract

Estimates of labor mobility costs are needed to assess the responses of employment and wages to trade shocks when factor adjustment is costly. Available methods to estimate those costs rely on panel data, which are seldom available in developing countries. The authors propose a method to estimate mobility costs using readily obtainable data worldwide. The estimator matches the changes in observed sectoral employment allocations with the predicted allocations from a model of costly labor adjustment. This paper estimates a world map of labor mobility costs and uses those estimates to explore the response of labor markets to trade policy.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 6556.

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Date of creation: 01 Aug 2013
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Handle: RePEc:wbk:wbrwps:6556

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Related research

Keywords: Labor Markets; Labor Policies; Economic Theory&Research; Work&Working Conditions; Labor Management and Relations;

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References

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  1. Gueorgui Kambourov, 2009. "Labour Market Regulations and the Sectoral Reallocation of Workers: The Case of Trade Reforms," Review of Economic Studies, Oxford University Press, vol. 76(4), pages 1321-1358.
  2. Naércio Aquino Menezes Filho & Marc-Andreas Muendler, 2007. "Labor Reallocation in Response to Trade Reform," CESifo Working Paper Series 1936, CESifo Group Munich.
  3. Artuç, Erhan & Chaudhuri, Shubham & McLaren, John, 2008. "Delay and dynamics in labor market adjustment: Simulation results," Journal of International Economics, Elsevier, Elsevier, vol. 75(1), pages 1-13, May.
  4. Goldberg, Pinelopi Koujianou & Pavcnik, Nina, 2003. "Trade, Wages and the Political Economy of Trade Protection: Evidence from the Colombian Trade Reforms," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3877, C.E.P.R. Discussion Papers.
  5. McFadden, Daniel, 1989. "A Method of Simulated Moments for Estimation of Discrete Response Models without Numerical Integration," Econometrica, Econometric Society, Econometric Society, vol. 57(5), pages 995-1026, September.
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Cited by:
  1. Claire H. Hollweg & Daniel Lederman & Diego Rojas & Elizabeth Ruppert Bulmer, 2014. "Sticky Feet : How Labor Market Frictions Shape the Impact of International Trade on Jobs and Wages," World Bank Publications, The World Bank, number 18777, August.

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