A Mapping of Labor Mobility Costs in Developing Countries
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World Bank, Washington, D.C.
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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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AGGREGATE EMPLOYMENT, AGRICULTURE, AVERAGE WAGE, CONSUMER PRICE INDEX, DEVELOPMENT ECONOMICS, DEVELOPMENT POLICY, DISCOUNTED VALUE, DISPLACED WORKERS, ECONOMETRICS, ECONOMIC RESEARCH, ECONOMICS, EDUCATIONAL ATTAINMENT, EMPLOYMENT, EMPLOYMENT CONDITIONS, EMPLOYMENT DYNAMICS, EMPLOYMENT LEVELS, EMPLOYMENT RESEARCH, EQUILIBRIUM WAGES, EXPECTED VALUE, EXPECTED WAGE, EXPORTS, FIRING, FIRING COSTS, FIRM DYNAMICS, FUTURE LABOR, GDP, GINI COEFFICIENT, GROSS FIXED CAPITAL FORMATION, GROWTH RATE, HIRING, INCOME, INCOME INEQUALITY, INCOME LEVELS, INTERNATIONAL TRADE, JOB TURNOVER, LABOR ADJUSTMENT, LABOR ADJUSTMENT COSTS, LABOR ALLOCATION, LABOR FORCE, LABOR MARKET, LABOR MARKET ADJUSTMENT, LABOR MARKET POLICIES, LABOR MARKET RIGIDITIES, LABOR MARKET TURNOVER, LABOR MARKETS, LABOR MOBILITY, LABOR REALLOCATION, LABOR_FORCE, LABOUR, LABOUR MARKET, LABOUR MARKET REGULATIONS, LABOUR MOVEMENTS, MARGINAL PRODUCT, MARKET WAGE, MIDDLE INCOME COUNTRIES, NOMINAL WAGES, OPEN ECONOMY, OPTIMIZATION, POLITICAL ECONOMY, PRIMARY EDUCATION, PRODUCTION FUNCTIONS, PROTECTED INDUSTRIES, PURCHASING POWER, REAL WAGE, REAL WAGES, RISK NEUTRAL, SERVICE SECTOR, TRADE LIBERALIZATION, TRADE POLICY, TRADE REFORMS, UNEMPLOYMENT, UNSKILLED WORKERS, VALUE ADDED, WAGE BILL, WAGE DIFFERENTIAL, WAGE DIFFERENTIALS, WAGE INEQUALITY, WORK IN PROGRESS, WORKER, WORKER HETEROGENEITY, WORKING