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A Mapping of Labor Mobility Costs in the Developing World

Author

Listed:
  • Erhan Artuç

    (WORLD BANK)

  • Daniel Lederman

    (WORLD BANK)

  • Guido Porto

    (Universidad Nacional de La Plata)

Abstract

Estimates 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.

Suggested Citation

  • Erhan Artuç & Daniel Lederman & Guido Porto, 2013. "A Mapping of Labor Mobility Costs in the Developing World," CEDLAS, Working Papers 0146, CEDLAS, Universidad Nacional de La Plata.
  • Handle: RePEc:dls:wpaper:0146
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    References listed on IDEAS

    as
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    More about this item

    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, Vacancies, and Immigrant Workers

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