Labor Adjustment Costs across Sectors and Regions
This paper estimates the mobility costs of workers across sectors and regions in a large sample of developing countries. The paper develops a new methodology that uses cross-sectional data only. This is motivated by the fact that panel data typical...
Main Authors: | , , |
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Format: | Working Paper |
Language: | English |
Published: |
World Bank, Washington, DC
2017
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Subjects: | |
Online Access: | http://documents.worldbank.org/curated/en/181111509642976782/Labor-adjustment-costs-across-sectors-and-regions http://hdl.handle.net/10986/28852 |
Summary: | This paper estimates the mobility costs
of workers across sectors and regions in a large sample of
developing countries. The paper develops a new methodology
that uses cross-sectional data only. This is motivated by
the fact that panel data typically are not available for
most developing countries. The results suggest that, on
average, sector mobility costs are higher than regional
mobility costs. The costs of moving across sectors and
regions are higher than the costs of moving across only
sectors or only regions. In poorer countries, workers face
higher mobility costs. The paper provides evidence
suggesting that mobility costs, particularly across sectors,
are partially driven by information assimetries and access
to the Internet can mitigate these costs. |
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