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A mapping of labor mobility costs in developing countries
Author:Artuc, Erhan; Lederman, Daniel; Porto, Guido; Collection Title:Policy Research working paper ; no. WPS 6556
Country:World; Date Stored:2013/08/05
Document Date:2013/08/01Document Type:Policy Research Working Paper
SubTopics:Economic Theory & Research; Work & Working Conditions; Labor Management and Relations; Labor Markets; Labor PoliciesLanguage:English
Major Sector:Industry and tradeRel. Proj ID:1W-Trade Policy, Labor Adjustment And Development -- -- P143178;
Region:The World RegionReport Number:WPS6556
Sub Sectors:Other domestic and international tradeTF No/Name:TF013527-Trade Policy, Labor Adjustment and Development
Volume No:1 of 1  

Summary: Estimates of labor mobility costs are needed to assess the responses of employment and wages to trade shocks when factor adjustment is costly. Available methods to estimate those costs rely on panel data, which are seldom available in developing countries. The authors propose a method to estimate mobility costs using readily obtainable data worldwide. The estimator matches the changes in observed sectoral employment allocations with the predicted allocations from a model of costly labor adjustment. This paper estimates a world map of labor mobility costs and uses those estimates to explore the response of labor markets to trade policy.

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