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A mapping of labor mobility costs in developing countries, Volume 1
Author:Artuc, Erhan; Lederman, Daniel; Porto, Guido; Country:World;
Date Stored:2013/08/05Document Date:2013/08/01
Document Type:Policy Research Working PaperSubTopics:Economic Theory & Research; Work & Working Conditions; Labor Management and Relations; Labor Markets; Labor Policies
Language:EnglishMajor Sector:Industry and trade
Rel. Proj ID:1W-Trade Policy, Labor Adjustment And Development -- -- P143178;Region:The World Region
Report Number:WPS6556Sub Sectors:Other domestic and international trade
Collection Title:Policy Research working paper ; no. WPS 6556TF No/Name:TF013527-Trade Policy, Labor Adjustment and Development
Volume No: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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