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Trade Liberalization, the Exchange Rate and Job and Worker Flows in Brazil


  • Eduardo Pontual Ribeiro
  • Carlos H. Corseuil


Over the 1990’s Brazil experienced a massive trade liberalization and wide variation in the real exchange rate. At the same time, employment growth was small and in manufacturing there was a significant reduction in total manufacturing. The main goal of this article is to idntify the effects of the exchange rate and trade liberalization on job and worker flows in Brazil. Using a novel sector exchange rate measure, our results suggest that a depreciation of the exchange rate affects net employment growth by increasing job creation and hires, with no effect on job reallocation. Tariffs have no effect on job or worker flows, while import penetration decrease job growth by increasing job destruction. The results suggest that the exchange rate have a very important role on job and worker flows, even after controlling for openess and sector specificities

Suggested Citation

  • Eduardo Pontual Ribeiro & Carlos H. Corseuil, 2004. "Trade Liberalization, the Exchange Rate and Job and Worker Flows in Brazil," Econometric Society 2004 Latin American Meetings 296, Econometric Society.
  • Handle: RePEc:ecm:latm04:296

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    References listed on IDEAS

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    Cited by:

    1. Mohamed Ali Marouani & Rim Mouelhi, 2014. "Employment Growth, Productivity and Jobs reallocations in Tunisia: A Microdata Analysis," Working Papers DT/2014/13, DIAL (Développement, Institutions et Mondialisation).
    2. Demir, Firat, 2010. "Exchange Rate Volatility and Employment Growth in Developing Countries: Evidence from Turkey," World Development, Elsevier, vol. 38(8), pages 1127-1140, August.
    3. Martin-Barroso, David & Nuñez-Serrano, Juan Andres & Turrion, Jaime & Velazquez, Francisco J., 2011. "The European Map of Job Flows," MPRA Paper 33602, University Library of Munich, Germany, revised 2011.
    4. Ligia Melo & Carlos Ballesteros, 2014. "The impact of external factors on job creation and destruction in the Colombian manufacturing sector," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 81, pages 155-186, Julio - D.
    5. Almeida, Rita K. & Poole, Jennifer P., 2017. "Trade and labor reallocation with heterogeneous enforcement of labor regulations," Journal of Development Economics, Elsevier, vol. 126(C), pages 154-166.
    6. Melo, Ligia & Ballesteros, Carlos, 2014. "Impacto de los factores externos sobre la creación y destrucción de empleo en el sector manufacturero colombiano," REVISTA LECTURAS DE ECONOMÍA, UNIVERSIDAD DE ANTIOQUIA - CIE, issue 81, pages 155-186, April.

    More about this item


    job and worker flows ; trade liberalization ; exchange rate; Brazil;

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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