Informal Jobs and Trade Liberalisation in Argentina

Rapid trade liberalization can exert profound effects on labor markets. Domestic firms, to sustain competitiveness for survival, could react through cutting labor benefits to achieve cost reductions. Alternatively, trade liberalization may alter the industry composition of firms changing the aggrega...

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Bibliographic Details
Main Authors:	Acosta, Pablo, Montes-Rojas, Gabriel
Format:	Journal Article
Language:	en_US
Published:	Taylor and Francis 2014
Subjects:	trade liberalization labor markets informal labor formality trade competitiveness foreign competition investment
Online Access:	http://hdl.handle.net/10986/20475

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spelling	okr-10986-204752021-04-23T14:03:56Z Informal Jobs and Trade Liberalisation in Argentina Acosta, Pablo Montes-Rojas, Gabriel trade liberalization labor markets informal labor formality trade competitiveness foreign competition investment Rapid trade liberalization can exert profound effects on labor markets. Domestic firms, to sustain competitiveness for survival, could react through cutting labor benefits to achieve cost reductions. Alternatively, trade liberalization may alter the industry composition of firms changing the aggregate formality rates. This paper studies the relationship between trade liberalization and informality in Argentina. Using manufacturing industry-level data for 1992-2003, the results confirm the hypothesis that trade increases informality in industries that experience sudden foreign competition. This explains about a third of the increase in informality. Sectors with higher investment ratios are able to neutralize and reverse this effect. 2014-10-28T17:00:50Z 2014-10-28T17:00:50Z 2014-06-20 Journal Article Journal of Development Studies 0022-0388 http://hdl.handle.net/10986/20475 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Taylor and Francis Publications & Research :: Journal Article Latin America & Caribbean ARGENTINA
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	trade liberalization labor markets informal labor formality trade competitiveness foreign competition investment
spellingShingle	trade liberalization labor markets informal labor formality trade competitiveness foreign competition investment Acosta, Pablo Montes-Rojas, Gabriel Informal Jobs and Trade Liberalisation in Argentina
geographic_facet	Latin America & Caribbean ARGENTINA
description	Rapid trade liberalization can exert profound effects on labor markets. Domestic firms, to sustain competitiveness for survival, could react through cutting labor benefits to achieve cost reductions. Alternatively, trade liberalization may alter the industry composition of firms changing the aggregate formality rates. This paper studies the relationship between trade liberalization and informality in Argentina. Using manufacturing industry-level data for 1992-2003, the results confirm the hypothesis that trade increases informality in industries that experience sudden foreign competition. This explains about a third of the increase in informality. Sectors with higher investment ratios are able to neutralize and reverse this effect.
format	Journal Article
author	Acosta, Pablo Montes-Rojas, Gabriel
author_facet	Acosta, Pablo Montes-Rojas, Gabriel
author_sort	Acosta, Pablo
title	Informal Jobs and Trade Liberalisation in Argentina
title_short	Informal Jobs and Trade Liberalisation in Argentina
title_full	Informal Jobs and Trade Liberalisation in Argentina
title_fullStr	Informal Jobs and Trade Liberalisation in Argentina
title_full_unstemmed	Informal Jobs and Trade Liberalisation in Argentina
title_sort	informal jobs and trade liberalisation in argentina
publisher	Taylor and Francis
publishDate	2014
url	http://hdl.handle.net/10986/20475
_version_	1764445476060397568

Informal Jobs and Trade Liberalisation in Argentina

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