Trade, informal employment and labor adjustment costs
Informal employment is ubiquitous in developing countries, but few studies have estimated workers'switching costs between informal and formal employment. This paper builds on the empirical literature grounded in discrete choice models to estimate these costs. The results suggest that inter-industry labor mobility costs are large, but entry costs into informal employment are significantly lower than the costs of entry in formal employment. Simulations of labor-market adjustments caused by a trade-related fall in manufacturing goods prices indicate that the share of informally employed workers rises after liberalization, but this is due to entry into the labor market by previously idle labor.
|Date of creation:||01 Sep 2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Raymundo M. Campos-Vázquez & Melissa A. Knox, 2013.
"Social Protection Programs and Employment: The Case of Mexico's Seguro Popular Program,"
Economía Mexicana NUEVA ÉPOCA,
, vol. 0(2), pages 403-448, July-Dece.
- Raymundo M. Campos-Vázquez & Melissa A. Knox, 2010. "Social protection programs and employment: The case of Mexico’s “Seguro Popular” program," Serie documentos de trabajo del Centro de Estudios Económicos 2010-14, El Colegio de México, Centro de Estudios Económicos.
- Raymundo M. Campos-Vazquez & Melissa A. Knox, . "Social Protection Programs and Employment: The Case of Mexico's Seguro Popular Program," Working Papers UWEC-2011-10, University of Washington, Department of Economics.
- Angel-Urdinola, Diego F. & Tanabe, Kimie, 2012. "Micro-determinants of informal employment in the Middle East and North Africa region," Social Protection Discussion Papers 66594, The World Bank.
- Naércio Aquino Menezes-Filho & Marc-Andreas Muendler, 2011.
"Labor Reallocation in Response to Trade Reform,"
NBER Working Papers
17372, National Bureau of Economic Research, Inc.
- Muendler, Marc-Andreas, 2007. "Labor Reallocation in Response to Trade Reform," University of California at San Diego, Economics Working Paper Series qt3cm38535, Department of Economics, UC San Diego.
- Naércio Aquino Menezes Filho & Marc-Andreas Muendler, 2007. "Labor Reallocation in Response to Trade Reform," CESifo Working Paper Series 1936, CESifo Group Munich.
- Artuc, Erhan, 2013. "PPML estimation of dynamic discrete choice models with aggregate shocks," Policy Research Working Paper Series 6480, The World Bank.
- Erhan Artu� & Shubham Chaudhuri & John McLaren, 2010.
"Trade Shocks and Labor Adjustment: A Structural Empirical Approach,"
American Economic Review,
American Economic Association, vol. 100(3), pages 1008-45, June.
- Erhan Artuc & Shubham Chaudhuri & John McLaren, 2007. "Trade Shocks and Labor Adjustment: A Structural Empirical Approach," NBER Working Papers 13465, National Bureau of Economic Research, Inc.
- Erhan Artuç & John McLaren, 2012.
"Trade Policy and Wage Inequality: A Structural Analysis with Occupational and Sectoral Mobility,"
NBER Working Papers
18503, National Bureau of Economic Research, Inc.
- Artuc, Erhan & McLaren, John, 2012. "Trade policy and wage inequality : a structural analysis with occupational and sectoral mobility," Policy Research Working Paper Series 6194, The World Bank.
- Rafael Dix-Carneiro, 2010. "Trade Liberalization and Labor Market Dynamics," Working Papers 1273, Princeton University, Department of Economics, Center for Economic Policy Studies..
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:6614. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi)
If references are entirely missing, you can add them using this form.