Click here for search results
Trade, informal employment and labor adjustment costs, Volume 1
Author:Arias, Javier; Artuc, Erhan; Lederman, Daniel; Rojas, Diego; Country:World;
Date Stored:2013/09/20Document Date:2013/09/01
Document Type:Policy Research Working PaperSubTopics:Economic Theory & Research; Work & Working Conditions; Labor Standards; 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:WPS6614Sub Sectors:Other domestic and international trade
Collection Title:Policy Research working paper ; no. WPS 6614TF No/Name:TF013527-Trade Policy, Labor Adjustment and Development
Volume No:1  

Summary: Informal employment is ubiquitous in developing countries, but few studies have estimated workers' switching costs between informal and formal employment. This paper builds on the empirical literature grounded in discrete choice models to estimate these costs. The results suggest that inter-industry labor mobility costs are large, but entry costs into informal employment are significantly lower than the costs of entry in formal employment. Simulations of labor-market adjustments caused by a trade-related fall in manufacturing goods prices indicate that the share of informally employed workers rises after liberalization, but this is due to entry into the labor market by previously idle labor.

Official Documents
Official, scanned versions of documents (may include signatures, etc.)
File TypeDescriptionFile Size (mb)
PDF 36 pagesOfficial version*2.52 (approx.)
TextText version**
How To Order

See documents related to this project
* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.
** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.

Permanent URL for this page: