Agro-Manufactured Export Prices, Wages and Unemployment
This paper estimates the impacts of world agricultural trade liberalization on wages, employment and unemployment in Argentina, a country with positive net agricultural exports and high unemployment rates. In the estimation of these wage and unempl...
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| Format: | Policy Research Working Paper |
| Language: | English |
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Washington, DC: World Bank
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2008/01/8965647/agro-manufactured-export-prices-wages-unemployment http://hdl.handle.net/10986/6471 |
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okr-10986-6471 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACTIVE LABOR ADJUSTMENT COSTS AGGREGATE UNEMPLOYMENT AGRICULTURAL PRICES AGRICULTURE AVERAGE WAGE AVERAGE WAGES CHILD LABOR COLLEGE EDUCATION COMMODITIES COMMODITY COMMODITY PRICES COMPARATIVE ADVANTAGE CURRENCY DEMAND CURVE DEMAND CURVES DEMAND FUNCTIONS DEREGULATION DEVELOPMENT POLICY ECONOMETRIC MODELS ECONOMETRICS ECONOMIC ACTIVITY ECONOMICS EDUCATIONAL LEVELS EFFICIENCY WAGES EMPLOYMENT EFFECT EMPLOYMENT INCREASES EMPLOYMENT OPPORTUNITIES EMPLOYMENT PROBABILITIES EMPLOYMENT PROBABILITY EMPLOYMENT STATUS EMPLOYMENT TRENDS EQUILIBRIUM PRICES EQUILIBRIUM UNEMPLOYMENT ESTIMATED PARAMETERS EXCHANGE RATES EXPECTED WAGE EXPECTED WAGES EXPENDITURES EXPORTS FACTOR MARKETS FACTOR PRICES FEDERAL RESERVE GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODELS HIGH UNEMPLOYMENT HIGH UNEMPLOYMENT RATES HOUSEHOLD CHARACTERISTICS HOUSEHOLD SURVEY HOUSEHOLD SURVEYS INCOME INCOME DISTRIBUTION INCOME INCREASES INCOME SUPPORT INTERNATIONAL MARKETS INTERNATIONAL PRICE INTERNATIONAL PRICES INTERNATIONAL TRADE JOB LOSSES JOB OFFER JOB OFFERS JOBS LABOR DEMAND LABOR FORCE LABOR MARKET LABOR MARKET ADJUSTMENT LABOR MARKETS LABOR REALLOCATION LABOR SUPPLY LABOUR LABOUR ADJUSTMENT LABOUR SUPPLY LIQUIDITY LOCAL LABOR MARKETS LOW-INCOME MACROECONOMIC CONTEXT MARGINAL PRODUCTIVITY MARKET PRICE MARKET PRICES MARKET WAGE MARKET WAGES MARKETING MARRIED WOMAN MARRIED WOMEN MAXIMUM LIKELIHOOD ESTIMATION MINIMUM WAGE MINIMUM WAGES NAIRU NATIONAL MODELS NATURAL RATE OF UNEMPLOYMENT NATURAL RESOURCES NEW JOBS OPEN ECONOMY POLITICAL ECONOMY PREVIOUS SECTION PRICE CHANGE PRICE CHANGES PRICE INCREASE PRICE INDEX PRICE INDEXES PRICE LEVEL PRIMARY EDUCATION PRODUCTIVITY REGIONAL UNEMPLOYMENT RESERVE BANK RURAL LABOR RURAL LABOR MARKETS SAHARA SEARCH COSTS SECONDARY EDUCATION SEMISKILLED LABOR SHADOW PRICES SKILL PREMIUM SKILLED LABOR STATE UNIVERSITY TARIFF BARRIERS TELECOMMUNICATIONS TOTAL EMPLOYMENT TRADE BARRIERS TRADE LIBERALIZATION TRADE POLICIES TRADE POLICY TRADE REFORMS TRANSACTION TRANSACTIONS COSTS UNEMPLOYED UNEMPLOYED INDIVIDUALS UNEMPLOYED PEOPLE UNEMPLOYED PERSON UNEMPLOYED WORKERS UNEMPLOYMENT UNEMPLOYMENT BENEFITS UNEMPLOYMENT RATE UNSKILLED LABOR UNSKILLED WORKERS URBAN EMPLOYMENT UTILITY MAXIMIZATION WAGE ADJUSTMENT WAGE DIFFERENTIALS WAGE EFFECT WAGE EFFECTS WAGE RATES WORK FORCE WORKER WORKERS WORKING AGE WORKING AGE POPULATION WORLD MARKETS WORLD TRADE WORLD TRADE ORGANIZATION WORTH WTO |
| spellingShingle |
ACTIVE LABOR ADJUSTMENT COSTS AGGREGATE UNEMPLOYMENT AGRICULTURAL PRICES AGRICULTURE AVERAGE WAGE AVERAGE WAGES CHILD LABOR COLLEGE EDUCATION COMMODITIES COMMODITY COMMODITY PRICES COMPARATIVE ADVANTAGE CURRENCY DEMAND CURVE DEMAND CURVES DEMAND FUNCTIONS DEREGULATION DEVELOPMENT POLICY ECONOMETRIC MODELS ECONOMETRICS ECONOMIC ACTIVITY ECONOMICS EDUCATIONAL LEVELS EFFICIENCY WAGES EMPLOYMENT EFFECT EMPLOYMENT INCREASES EMPLOYMENT OPPORTUNITIES EMPLOYMENT PROBABILITIES EMPLOYMENT PROBABILITY EMPLOYMENT STATUS EMPLOYMENT TRENDS EQUILIBRIUM PRICES EQUILIBRIUM UNEMPLOYMENT ESTIMATED PARAMETERS EXCHANGE RATES EXPECTED WAGE EXPECTED WAGES EXPENDITURES EXPORTS FACTOR MARKETS FACTOR PRICES FEDERAL RESERVE GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODELS HIGH UNEMPLOYMENT HIGH UNEMPLOYMENT RATES HOUSEHOLD CHARACTERISTICS HOUSEHOLD SURVEY HOUSEHOLD SURVEYS INCOME INCOME DISTRIBUTION INCOME INCREASES INCOME SUPPORT INTERNATIONAL MARKETS INTERNATIONAL PRICE INTERNATIONAL PRICES INTERNATIONAL TRADE JOB LOSSES JOB OFFER JOB OFFERS JOBS LABOR DEMAND LABOR FORCE LABOR MARKET LABOR MARKET ADJUSTMENT LABOR MARKETS LABOR REALLOCATION LABOR SUPPLY LABOUR LABOUR ADJUSTMENT LABOUR SUPPLY LIQUIDITY LOCAL LABOR MARKETS LOW-INCOME MACROECONOMIC CONTEXT MARGINAL PRODUCTIVITY MARKET PRICE MARKET PRICES MARKET WAGE MARKET WAGES MARKETING MARRIED WOMAN MARRIED WOMEN MAXIMUM LIKELIHOOD ESTIMATION MINIMUM WAGE MINIMUM WAGES NAIRU NATIONAL MODELS NATURAL RATE OF UNEMPLOYMENT NATURAL RESOURCES NEW JOBS OPEN ECONOMY POLITICAL ECONOMY PREVIOUS SECTION PRICE CHANGE PRICE CHANGES PRICE INCREASE PRICE INDEX PRICE INDEXES PRICE LEVEL PRIMARY EDUCATION PRODUCTIVITY REGIONAL UNEMPLOYMENT RESERVE BANK RURAL LABOR RURAL LABOR MARKETS SAHARA SEARCH COSTS SECONDARY EDUCATION SEMISKILLED LABOR SHADOW PRICES SKILL PREMIUM SKILLED LABOR STATE UNIVERSITY TARIFF BARRIERS TELECOMMUNICATIONS TOTAL EMPLOYMENT TRADE BARRIERS TRADE LIBERALIZATION TRADE POLICIES TRADE POLICY TRADE REFORMS TRANSACTION TRANSACTIONS COSTS UNEMPLOYED UNEMPLOYED INDIVIDUALS UNEMPLOYED PEOPLE UNEMPLOYED PERSON UNEMPLOYED WORKERS UNEMPLOYMENT UNEMPLOYMENT BENEFITS UNEMPLOYMENT RATE UNSKILLED LABOR UNSKILLED WORKERS URBAN EMPLOYMENT UTILITY MAXIMIZATION WAGE ADJUSTMENT WAGE DIFFERENTIALS WAGE EFFECT WAGE EFFECTS WAGE RATES WORK FORCE WORKER WORKERS WORKING AGE WORKING AGE POPULATION WORLD MARKETS WORLD TRADE WORLD TRADE ORGANIZATION WORTH WTO Porto, Guido Agro-Manufactured Export Prices, Wages and Unemployment |
| geographic_facet |
Latin America & Caribbean |
| relation |
Policy Research Working Paper; No. 4489 |
| description |
This paper estimates the impacts of
world agricultural trade liberalization on wages, employment
and unemployment in Argentina, a country with positive net
agricultural exports and high unemployment rates. In the
estimation of these wage and unemployment responses, the
empirical model allows for individual labor supply responses
and for adjustment costs in labor demand. The findings show
that a 10 percent increase in the price of agricultural
exports would cause an increase in the Argentine employment
probability of 1.36 percentage points, matched by a decline
in the unemployment probability of 0.75 percentage points
and an increase in labor market participation of 0.61
percentage points. Further, the unemployment rate would
decline by 1.23 percentage points (by almost 10 percent).
Expected wages would increase by 10.3 percent, an effect
that is mostly driven by higher employment probabilities.
This indicates that the bulk of the impacts of trade reforms
originates in household responses in the presence of
adjustment costs, and that failure to account for them may
lead to significant biases in the welfare evaluation of
trade policy. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Porto, Guido |
| author_facet |
Porto, Guido |
| author_sort |
Porto, Guido |
| title |
Agro-Manufactured Export Prices, Wages and Unemployment |
| title_short |
Agro-Manufactured Export Prices, Wages and Unemployment |
| title_full |
Agro-Manufactured Export Prices, Wages and Unemployment |
| title_fullStr |
Agro-Manufactured Export Prices, Wages and Unemployment |
| title_full_unstemmed |
Agro-Manufactured Export Prices, Wages and Unemployment |
| title_sort |
agro-manufactured export prices, wages and unemployment |
| publisher |
Washington, DC: World Bank |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2008/01/8965647/agro-manufactured-export-prices-wages-unemployment http://hdl.handle.net/10986/6471 |
| _version_ |
1764400213553840128 |
| spelling |
okr-10986-64712021-04-23T14:02:31Z Agro-Manufactured Export Prices, Wages and Unemployment Porto, Guido ACTIVE LABOR ADJUSTMENT COSTS AGGREGATE UNEMPLOYMENT AGRICULTURAL PRICES AGRICULTURE AVERAGE WAGE AVERAGE WAGES CHILD LABOR COLLEGE EDUCATION COMMODITIES COMMODITY COMMODITY PRICES COMPARATIVE ADVANTAGE CURRENCY DEMAND CURVE DEMAND CURVES DEMAND FUNCTIONS DEREGULATION DEVELOPMENT POLICY ECONOMETRIC MODELS ECONOMETRICS ECONOMIC ACTIVITY ECONOMICS EDUCATIONAL LEVELS EFFICIENCY WAGES EMPLOYMENT EFFECT EMPLOYMENT INCREASES EMPLOYMENT OPPORTUNITIES EMPLOYMENT PROBABILITIES EMPLOYMENT PROBABILITY EMPLOYMENT STATUS EMPLOYMENT TRENDS EQUILIBRIUM PRICES EQUILIBRIUM UNEMPLOYMENT ESTIMATED PARAMETERS EXCHANGE RATES EXPECTED WAGE EXPECTED WAGES EXPENDITURES EXPORTS FACTOR MARKETS FACTOR PRICES FEDERAL RESERVE GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODELS HIGH UNEMPLOYMENT HIGH UNEMPLOYMENT RATES HOUSEHOLD CHARACTERISTICS HOUSEHOLD SURVEY HOUSEHOLD SURVEYS INCOME INCOME DISTRIBUTION INCOME INCREASES INCOME SUPPORT INTERNATIONAL MARKETS INTERNATIONAL PRICE INTERNATIONAL PRICES INTERNATIONAL TRADE JOB LOSSES JOB OFFER JOB OFFERS JOBS LABOR DEMAND LABOR FORCE LABOR MARKET LABOR MARKET ADJUSTMENT LABOR MARKETS LABOR REALLOCATION LABOR SUPPLY LABOUR LABOUR ADJUSTMENT LABOUR SUPPLY LIQUIDITY LOCAL LABOR MARKETS LOW-INCOME MACROECONOMIC CONTEXT MARGINAL PRODUCTIVITY MARKET PRICE MARKET PRICES MARKET WAGE MARKET WAGES MARKETING MARRIED WOMAN MARRIED WOMEN MAXIMUM LIKELIHOOD ESTIMATION MINIMUM WAGE MINIMUM WAGES NAIRU NATIONAL MODELS NATURAL RATE OF UNEMPLOYMENT NATURAL RESOURCES NEW JOBS OPEN ECONOMY POLITICAL ECONOMY PREVIOUS SECTION PRICE CHANGE PRICE CHANGES PRICE INCREASE PRICE INDEX PRICE INDEXES PRICE LEVEL PRIMARY EDUCATION PRODUCTIVITY REGIONAL UNEMPLOYMENT RESERVE BANK RURAL LABOR RURAL LABOR MARKETS SAHARA SEARCH COSTS SECONDARY EDUCATION SEMISKILLED LABOR SHADOW PRICES SKILL PREMIUM SKILLED LABOR STATE UNIVERSITY TARIFF BARRIERS TELECOMMUNICATIONS TOTAL EMPLOYMENT TRADE BARRIERS TRADE LIBERALIZATION TRADE POLICIES TRADE POLICY TRADE REFORMS TRANSACTION TRANSACTIONS COSTS UNEMPLOYED UNEMPLOYED INDIVIDUALS UNEMPLOYED PEOPLE UNEMPLOYED PERSON UNEMPLOYED WORKERS UNEMPLOYMENT UNEMPLOYMENT BENEFITS UNEMPLOYMENT RATE UNSKILLED LABOR UNSKILLED WORKERS URBAN EMPLOYMENT UTILITY MAXIMIZATION WAGE ADJUSTMENT WAGE DIFFERENTIALS WAGE EFFECT WAGE EFFECTS WAGE RATES WORK FORCE WORKER WORKERS WORKING AGE WORKING AGE POPULATION WORLD MARKETS WORLD TRADE WORLD TRADE ORGANIZATION WORTH WTO This paper estimates the impacts of world agricultural trade liberalization on wages, employment and unemployment in Argentina, a country with positive net agricultural exports and high unemployment rates. In the estimation of these wage and unemployment responses, the empirical model allows for individual labor supply responses and for adjustment costs in labor demand. The findings show that a 10 percent increase in the price of agricultural exports would cause an increase in the Argentine employment probability of 1.36 percentage points, matched by a decline in the unemployment probability of 0.75 percentage points and an increase in labor market participation of 0.61 percentage points. Further, the unemployment rate would decline by 1.23 percentage points (by almost 10 percent). Expected wages would increase by 10.3 percent, an effect that is mostly driven by higher employment probabilities. This indicates that the bulk of the impacts of trade reforms originates in household responses in the presence of adjustment costs, and that failure to account for them may lead to significant biases in the welfare evaluation of trade policy. 2012-05-25T20:30:54Z 2012-05-25T20:30:54Z 2008-01 http://documents.worldbank.org/curated/en/2008/01/8965647/agro-manufactured-export-prices-wages-unemployment http://hdl.handle.net/10986/6471 English Policy Research Working Paper; No. 4489 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC: World Bank Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean |