Trade, Informal Employment and Labor Adjustment Costs

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dc.creatorArias, Javier
dc.creatorArtuc, Erhan
dc.creatorLederman, Daniel
dc.creatorRojas, Diego
dc.date2014-02-03T21:34:27Z
dc.date2014-02-03T21:34:27Z
dc.date2013-09
dc.date.accessioned2026-07-01T00:59:38Z
dc.descriptionInformal 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.
dc.formatapplication/pdf
dc.formattext/plain
dc.identifierhttp://documents.worldbank.org/curated/en/2013/09/18279475/trade-informal-employment-labor-adjustment-costs
dc.identifierhttps://hdl.handle.net/10986/16841
dc.identifier10.1596/1813-9450-6614
dc.identifier.urihttp://hdl.handle.net/123456789/413985
dc.languageEnglish
dc.languageen_US
dc.publisherWorld Bank, Washington, DC
dc.relationPolicy Research Working Paper;No. 6614
dc.rightsCC BY 3.0 IGO
dc.rightshttp://creativecommons.org/licenses/by/3.0/igo/
dc.rightsWorld Bank
dc.subjectADJUSTMENT PROCESS
dc.subjectAGRICULTURE
dc.subjectAVERAGE WAGE
dc.subjectAVERAGE WAGES
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCOMPARATIVE ANALYSIS
dc.subjectCONSUMER PRICE INDEX
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDEVELOPMENT POLICY
dc.subjectDISCOUNTED VALUE
dc.subjectDISCUSSIONS
dc.subjectDISPLACEMENT
dc.subjectDRIVERS
dc.subjectECONOMETRICS
dc.subjectECONOMIC RESEARCH
dc.subjectECONOMIC SECTORS
dc.subjectECONOMICS
dc.subjectEMPLOYMENT INCREASES
dc.subjectEMPLOYMENT SHARE
dc.subjectEMPLOYMENT STATUS
dc.subjectENTREPRENEURIAL ABILITY
dc.subjectENTRY COST
dc.subjectENTRY COSTS
dc.subjectEXCESSIVE REGULATION
dc.subjectEXPECTED VALUES
dc.subjectEXPECTED WAGES
dc.subjectEXPORTS
dc.subjectGENERAL EQUILIBRIUM
dc.subjectHAZARDS
dc.subjectHOUSEHOLD SURVEY
dc.subjectHUMAN CAPITAL
dc.subjectINFORMAL ECONOMY
dc.subjectINFORMAL EMPLOYMENT
dc.subjectINFORMAL SECTOR
dc.subjectINTERNATIONAL TRADE
dc.subjectJOBS
dc.subjectLABOR ADJUSTMENT
dc.subjectLABOR ADJUSTMENT COSTS
dc.subjectLABOR ALLOCATION
dc.subjectLABOR ALLOCATIONS
dc.subjectLABOR DEMAND
dc.subjectLABOR FLOW
dc.subjectLABOR FORCE
dc.subjectLABOR MARKET
dc.subjectLABOR MARKET RIGIDITIES
dc.subjectLABOR MARKETS
dc.subjectLABOR MOBILITY
dc.subjectLABOR REALLOCATION
dc.subjectLABOR SHARE
dc.subjectLABOR SUPPLY
dc.subjectLABOUR
dc.subjectMALE WORKERS
dc.subjectMANUFACTURING INDUSTRY
dc.subjectOCCUPATIONAL MOBILITY
dc.subjectOPPORTUNITY COST
dc.subjectOPTIMIZATION
dc.subjectPREVIOUS SECTION
dc.subjectPRODUCTION FUNCTION
dc.subjectPRODUCTION FUNCTIONS
dc.subjectPRODUCTIVITY
dc.subjectPROPERTY RIGHTS
dc.subjectREAL WAGE
dc.subjectREAL WAGES
dc.subjectRISK NEUTRAL
dc.subjectSALARIED WORKERS
dc.subjectSECURE PROPERTY RIGHTS
dc.subjectSOCIAL PROTECTION
dc.subjectSOCIAL SECURITY
dc.subjectTOTAL EMPLOYMENT
dc.subjectTRADE LIBERALIZATION
dc.subjectTRADE POLICY
dc.subjectTRADE REFORMS
dc.subjectUNEMPLOYED
dc.subjectUNEMPLOYMENT
dc.subjectVALUE ADDED
dc.subjectWAGE BILL
dc.subjectWAGE GAP
dc.subjectWAGE INEQUALITY
dc.subjectWORK IN PROGRESS
dc.subjectWORKER
dc.subjectWORKERS
dc.subjectWORKING
dc.subjectWORKING CONDITIONS
dc.titleTrade, Informal Employment and Labor Adjustment Costs

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