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 esti...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2013/09/18279475/trade-informal-employment-labor-adjustment-costs http://hdl.handle.net/10986/16841 |
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okr-10986-168412021-04-23T14:03:32Z Trade, Informal Employment and Labor Adjustment Costs Arias, Javier Artuc, Erhan Lederman, Daniel Rojas, Diego ADJUSTMENT PROCESS AGRICULTURE AVERAGE WAGE AVERAGE WAGES COMPARATIVE ADVANTAGE COMPARATIVE ANALYSIS CONSUMER PRICE INDEX DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISCOUNTED VALUE DISCUSSIONS DISPLACEMENT DRIVERS ECONOMETRICS ECONOMIC RESEARCH ECONOMIC SECTORS ECONOMICS EMPLOYMENT INCREASES EMPLOYMENT SHARE EMPLOYMENT STATUS ENTREPRENEURIAL ABILITY ENTRY COST ENTRY COSTS EXCESSIVE REGULATION EXPECTED VALUES EXPECTED WAGES EXPORTS GENERAL EQUILIBRIUM HAZARDS HOUSEHOLD SURVEY HUMAN CAPITAL INFORMAL ECONOMY INFORMAL EMPLOYMENT INFORMAL SECTOR INTERNATIONAL TRADE JOBS LABOR ADJUSTMENT LABOR ADJUSTMENT COSTS LABOR ALLOCATION LABOR ALLOCATIONS LABOR DEMAND LABOR FLOW LABOR FORCE LABOR MARKET LABOR MARKET RIGIDITIES LABOR MARKETS LABOR MOBILITY LABOR REALLOCATION LABOR SHARE LABOR SUPPLY LABOUR MALE WORKERS MANUFACTURING INDUSTRY OCCUPATIONAL MOBILITY OPPORTUNITY COST OPTIMIZATION PREVIOUS SECTION PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PROPERTY RIGHTS REAL WAGE REAL WAGES RISK NEUTRAL SALARIED WORKERS SECURE PROPERTY RIGHTS SOCIAL PROTECTION SOCIAL SECURITY TOTAL EMPLOYMENT TRADE LIBERALIZATION TRADE POLICY TRADE REFORMS UNEMPLOYED UNEMPLOYMENT VALUE ADDED WAGE BILL WAGE GAP WAGE INEQUALITY WORK IN PROGRESS WORKER WORKERS WORKING WORKING CONDITIONS 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. 2014-02-03T21:34:27Z 2014-02-03T21:34:27Z 2013-09 http://documents.worldbank.org/curated/en/2013/09/18279475/trade-informal-employment-labor-adjustment-costs http://hdl.handle.net/10986/16841 English en_US Policy Research Working Paper;No. 6614 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ADJUSTMENT PROCESS AGRICULTURE AVERAGE WAGE AVERAGE WAGES COMPARATIVE ADVANTAGE COMPARATIVE ANALYSIS CONSUMER PRICE INDEX DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISCOUNTED VALUE DISCUSSIONS DISPLACEMENT DRIVERS ECONOMETRICS ECONOMIC RESEARCH ECONOMIC SECTORS ECONOMICS EMPLOYMENT INCREASES EMPLOYMENT SHARE EMPLOYMENT STATUS ENTREPRENEURIAL ABILITY ENTRY COST ENTRY COSTS EXCESSIVE REGULATION EXPECTED VALUES EXPECTED WAGES EXPORTS GENERAL EQUILIBRIUM HAZARDS HOUSEHOLD SURVEY HUMAN CAPITAL INFORMAL ECONOMY INFORMAL EMPLOYMENT INFORMAL SECTOR INTERNATIONAL TRADE JOBS LABOR ADJUSTMENT LABOR ADJUSTMENT COSTS LABOR ALLOCATION LABOR ALLOCATIONS LABOR DEMAND LABOR FLOW LABOR FORCE LABOR MARKET LABOR MARKET RIGIDITIES LABOR MARKETS LABOR MOBILITY LABOR REALLOCATION LABOR SHARE LABOR SUPPLY LABOUR MALE WORKERS MANUFACTURING INDUSTRY OCCUPATIONAL MOBILITY OPPORTUNITY COST OPTIMIZATION PREVIOUS SECTION PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PROPERTY RIGHTS REAL WAGE REAL WAGES RISK NEUTRAL SALARIED WORKERS SECURE PROPERTY RIGHTS SOCIAL PROTECTION SOCIAL SECURITY TOTAL EMPLOYMENT TRADE LIBERALIZATION TRADE POLICY TRADE REFORMS UNEMPLOYED UNEMPLOYMENT VALUE ADDED WAGE BILL WAGE GAP WAGE INEQUALITY WORK IN PROGRESS WORKER WORKERS WORKING WORKING CONDITIONS |
| spellingShingle |
ADJUSTMENT PROCESS AGRICULTURE AVERAGE WAGE AVERAGE WAGES COMPARATIVE ADVANTAGE COMPARATIVE ANALYSIS CONSUMER PRICE INDEX DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISCOUNTED VALUE DISCUSSIONS DISPLACEMENT DRIVERS ECONOMETRICS ECONOMIC RESEARCH ECONOMIC SECTORS ECONOMICS EMPLOYMENT INCREASES EMPLOYMENT SHARE EMPLOYMENT STATUS ENTREPRENEURIAL ABILITY ENTRY COST ENTRY COSTS EXCESSIVE REGULATION EXPECTED VALUES EXPECTED WAGES EXPORTS GENERAL EQUILIBRIUM HAZARDS HOUSEHOLD SURVEY HUMAN CAPITAL INFORMAL ECONOMY INFORMAL EMPLOYMENT INFORMAL SECTOR INTERNATIONAL TRADE JOBS LABOR ADJUSTMENT LABOR ADJUSTMENT COSTS LABOR ALLOCATION LABOR ALLOCATIONS LABOR DEMAND LABOR FLOW LABOR FORCE LABOR MARKET LABOR MARKET RIGIDITIES LABOR MARKETS LABOR MOBILITY LABOR REALLOCATION LABOR SHARE LABOR SUPPLY LABOUR MALE WORKERS MANUFACTURING INDUSTRY OCCUPATIONAL MOBILITY OPPORTUNITY COST OPTIMIZATION PREVIOUS SECTION PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PROPERTY RIGHTS REAL WAGE REAL WAGES RISK NEUTRAL SALARIED WORKERS SECURE PROPERTY RIGHTS SOCIAL PROTECTION SOCIAL SECURITY TOTAL EMPLOYMENT TRADE LIBERALIZATION TRADE POLICY TRADE REFORMS UNEMPLOYED UNEMPLOYMENT VALUE ADDED WAGE BILL WAGE GAP WAGE INEQUALITY WORK IN PROGRESS WORKER WORKERS WORKING WORKING CONDITIONS Arias, Javier Artuc, Erhan Lederman, Daniel Rojas, Diego Trade, Informal Employment and Labor Adjustment Costs |
| relation |
Policy Research Working Paper;No. 6614 |
| description |
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. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Arias, Javier Artuc, Erhan Lederman, Daniel Rojas, Diego |
| author_facet |
Arias, Javier Artuc, Erhan Lederman, Daniel Rojas, Diego |
| author_sort |
Arias, Javier |
| title |
Trade, Informal Employment and Labor Adjustment Costs |
| title_short |
Trade, Informal Employment and Labor Adjustment Costs |
| title_full |
Trade, Informal Employment and Labor Adjustment Costs |
| title_fullStr |
Trade, Informal Employment and Labor Adjustment Costs |
| title_full_unstemmed |
Trade, Informal Employment and Labor Adjustment Costs |
| title_sort |
trade, informal employment and labor adjustment costs |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2013/09/18279475/trade-informal-employment-labor-adjustment-costs http://hdl.handle.net/10986/16841 |
| _version_ |
1764434664336916480 |