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The Impacts Of Trade On The Brazilian Labor Market
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Book Synopsis The Impacts of Trade on the Brazilian Labor Market by : Francisco Carneiro
Download or read book The Impacts of Trade on the Brazilian Labor Market written by Francisco Carneiro and published by . This book was released on 2002 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper assesses the impacts of trade liberalization on macroeconomic variables and labor market indicators for the case of Brazil. The motivation is based on earlier debate on the role of trade liberalization in shaping out labor market outcomes in the well known Hecksher-Ohlin and Stolper-Samuelson (HOS) theorems. Countries that have adopted outer-oriented development strategies are reported to have reached higher rates of growth as compared to countries that have adopted the import substitution strategy [Krueger (1983), (1988)]. To address these issues for the case of Brazil, we use a computable general equilibrium (CGE) modeling approach to model the patterns of export growth by sector and their effects on macroeconomic and labor market indicators. The CGE modeling strategy allows for the investigation of inter-industry and employment linkages from export growth in particular sectors, productivity shocks, and export demand shocks. This methodology has been applied for a number of countries with different purposes and can offer a rich base of empirical simulations for analyzing quantitatively the effects of economic policies and external shocks on the domestic economy [Robinson et al. (1999)]. Overall our results have shown that trade liberalization contributes to improve economic welfare by means of greater output, lower domestic prices, and higher labor demand, but that the benefits of this economic improvement tend be appropriated by the most skilled workers in the most trade-oriented sectors, what is against the predictions of the HOS theorems.
Book Synopsis The Gendered Labor Market Impacts of Trade Liberalization by : Isis Gaddis
Download or read book The Gendered Labor Market Impacts of Trade Liberalization written by Isis Gaddis and published by . This book was released on 2017 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates gender differences in the impact of Brazil's trade liberalization on labor market outcomes. To identify the causal effect of trade reforms, the paper uses difference-in-difference estimation exploiting variation across microregions in pre-liberalization industry composition. The analysis finds that trade liberalization reduced male and female labor force participation and employment rates, but the effects on men were significantly larger. Thereby, tariff reductions contributed to gender convergence in labor force participation and employment rates. Gender differences are concentrated among the low-skilled population and in the tradable sector, where male and female workers are most likely to be imperfect substitutes.
Book Synopsis The Short-Term Impact of COVID-19 on Labor Markets, Poverty and Inequality in Brazil by : International Monetary Fund
Download or read book The Short-Term Impact of COVID-19 on Labor Markets, Poverty and Inequality in Brazil written by International Monetary Fund and published by International Monetary Fund. This book was released on 2021-03-05 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: We document the short-term impact of the COVID-19 pandemic on the Brazilian labor market focusing on employment, wages and hours worked using the nationally representative household surveys PNAD-Continua and PNAD COVID. Sectors most susceptible to the shock because they are more contact-intensive and less teleworkable, such as construction, domestic services and hospitality, suffered large job losses and reductions in hours. Given low income workers experienced the largest decline in earnings, extreme poverty and the Gini coefficient based on labor income increased by around 9.2 and 5 percentage points, respectively, due to the immediate shock. The government’s broad based, temporary Emergency Aid transfer program more than offset the labor income losses for the bottom four deciles, however, such that poverty relative to the pre-COVID baseline fell. At a cost of around 4 percent of GDP in 2020 such support is not fiscally sustainable beyond the short-term and ended in late 2020. The challenge will be to avoid a sharp increase in poverty and inequality if the labor market does not pick up sufficiently fast in 2021.
Book Synopsis Enforcement of Labor Regulation and the Labor Market Effects of Trade by : Gabriel Ulyssea
Download or read book Enforcement of Labor Regulation and the Labor Market Effects of Trade written by Gabriel Ulyssea and published by . This book was released on 2018 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: How does enforcement of labor regulations shape the labor market effects of trade? To tackle this question, we exploit the Brazilian trade liberalization episode and exogenous variation in the intensity of both the trade shock and enforcement across local labor markets. Regions with stricter enforcement observed no increase in informal employment but large disemployment effects. Regions with weaker enforcement had no employment losses but substantial increases in informality. All effects are concentrated on unskilled workers, with no effects on skilled workers. The results indicate that informality acts as a buffer that reduces trade-induced adjustment costs in the labor market.
Book Synopsis Law and Employment by : James J. Heckman
Download or read book Law and Employment written by James J. Heckman and published by University of Chicago Press. This book was released on 2007-11-01 with total page 585 pages. Available in PDF, EPUB and Kindle. Book excerpt: Law and Employment analyzes the effects of regulation and deregulation on Latin American labor markets and presents empirically grounded studies of the costs of regulation. Numerous labor regulations that were introduced or reformed in Latin America in the past thirty years have had important economic consequences. Nobel Prize-winning economist James J. Heckman and Carmen Pagés document the behavior of firms attempting to stay in business and be competitive while facing the high costs of complying with these labor laws. They challenge the prevailing view that labor market regulations affect only the distribution of labor incomes and have little or no impact on efficiency or the performance of labor markets. Using new micro-evidence, this volume shows that labor regulations reduce labor market turnover rates and flexibility, promote inequality, and discriminate against marginal workers. Along with in-depth studies of Colombia, Peru, Brazil, Argentina, Chile, Uruguay, Jamaica, and Trinidad, Law and Employment provides comparative analysis of Latin American economies against a range of European countries and the United States. The book breaks new ground by quantifying not only the cost of regulation in Latin America, the Caribbean, and in the OECD, but also the broader impact of this regulation.
Book Synopsis Trade Reform and Regional Dynamics by : Rafael Dix-Carneiro
Download or read book Trade Reform and Regional Dynamics written by Rafael Dix-Carneiro and published by . This book was released on 2015 with total page 85 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper empirically studies the dynamics of labor market adjustment following the Brazilian trade reform of the 1990s. The paper uses variation in industry-specific tariffcuts interacted with initial regional industry mix to measure trade-induced local labor demand shocks and examines regional and individual labor market responses to those one-time shocks over two decades. Contrary to conventional wisdom, the analysis does not find that the impact of local shocks is dissipated over time through wage-equalizing migration. Instead, it finds steadily growing effects of local shocks on regional formal sector wages and employment for 20 years. This finding can be rationalized in a simple equilibrium model with two complementary factors of production, labor and industry-specific factors such as capital, that adjust slowly and imperfectly to shocks. Next, the paper documents rich margins of adjustment induced by the trade reform at the regional and individual levels. Workers initially employed in harder hit regions face continuously deteriorating formal labor market outcomes relative to workers employed in less affcted regions, and this gap persists even 20 years after the beginning of trade liberalization. Negative local trade shocks induce workers to shift out of the formal tradable sector and into the formal nontradable sector. Non-employment strongly increases in harder hit regions in the medium run, but in the longer run, non-employed workers eventually find re-employment in the informal sector. Working age population does not react to these local shocks, but formal sector net migration does, consistent with the relative decline of the formal sector and growth of the informal sector in adversely affected regions.
Book Synopsis Meeting the Employment Challenge by : Janine Berg
Download or read book Meeting the Employment Challenge written by Janine Berg and published by International Labour Organization. This book was released on 2006 with total page 272 pages. Available in PDF, EPUB and Kindle. Book excerpt: Arguing that economic policies in Argentina, Brazil, and Mexico favor markets over institutions and the international economy over the domestic - to the detriment of the workforce in those countries - this publication presents extensive evidence in support of placing employment concerns at the center of economic and social policies. The authors discuss the challenges the three countries face in creating employment, as well as the evolution of the labor market since 1990 in terms of the quantity and quality of jobs. They then explore the impact of five policy areas on employment creation: macroeconomic policy, trade liberalization, foreign direct investment, labor market regulations and policies, and social dialogue. Their concluding recommendations offer concrete steps for balancing market forces and policy intervention in the interest of employment growth in a sound economy
Book Synopsis Trade Liberalization and Labor Market Adjustment in Brazil by : Nina Pavcnik
Download or read book Trade Liberalization and Labor Market Adjustment in Brazil written by Nina Pavcnik and published by . This book was released on 2003 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Sustaining Employment and Wage Gains in Brazil by : Joana Silva
Download or read book Sustaining Employment and Wage Gains in Brazil written by Joana Silva and published by World Bank Publications. This book was released on 2015-08-26 with total page 175 pages. Available in PDF, EPUB and Kindle. Book excerpt: Continued social and economic progress in Brazil will depend on high employment, sustained labor productivity and income growth, and opportunities for the poor and disadvantaged to upgrade their own productivity and convert it into sustainable incomes.
Book Synopsis The Impact of the China Shock on the Manufacturing Labor Market in Brazil by : Lourenço Senne Paz
Download or read book The Impact of the China Shock on the Manufacturing Labor Market in Brazil written by Lourenço Senne Paz and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The vigorous growth of the Chinese economy together with its growing role in international trade has raised fears of deindustrialization among developing countries. This study draws on the large increase in the international trade exposure of the Brazilian economy from 2000 to 2012 to assess the impacts of trade on its manufacturing sector. In this period, import penetration increased by 25%, and at the same time, Chinas share of import penetration increased from 3% to 20%. Using household survey data that encompasses both formal and informal workers, this papers estimates indicate that higher import penetration reduces the employment level, the share of employment in the population, the hourly wage, the interindustry wage premium, and the share of informal employment. The industry-level results indicate that a rise in import penetration from either China or the rest of the world (ROW) reduced the employment level, hourly wage, and share of informal employment while increasing the interindustry wage premium. The worker-level results suggest that industry-level import penetration from China and the ROW raised workers wages and reduced the likelihood of their being informally employed. The state-level estimates imply that Chinese and ROW imports per worker initially reduced the employment level, the hourly wage, and share of informal employment, but these effects were reversed after 2008. Chinese imports per firm had a negative impact on the share of informal employment and a positive one on average years of schooling. Before 2008, Chinese imports per firm increased the share of workers with both high-school and college educations, and the net impact on both shares became negative after 2008. Estimates using actual imports per worker and per firm did not impact state-level labor-market outcomes. Finally, these effects were modulated by the labor intensity of the industry, the state-level initial share of manufacturing in the gross domestic product, the availability of a sea harbor in the state, and the implementation of the Nova Matriz Econmica policies in 2008.
Book Synopsis Trade Liberalization, Employment Flows and Wage Inequality in Brazil by : Francisco H. G. Ferreira
Download or read book Trade Liberalization, Employment Flows and Wage Inequality in Brazil written by Francisco H. G. Ferreira and published by . This book was released on 2007 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using nationally representative, economywide data, this paper investigates the relative importance of trade-mandated effects on industry wage premia; industry and economywide skill premia; and employment flows in accounting for changes in the wage distribution in Brazil during the 1988-95 trade liberalization. Unlike in other Latin American countries, trade liberalization appears to have made a significant contribution toward a reduction in wage inequality. These effects have not occurred through changes in industry-specific (wage or skill) premia. Instead, they appear to have been channeled through substantial employment flows across sectors and formality categories. Changes in the economywide skill premium are also important.
Book Synopsis Regional Labor Market Effects of Trade Policy by : Brian K. Kovak
Download or read book Regional Labor Market Effects of Trade Policy written by Brian K. Kovak and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Non-traded Gains From Trade - Selection in the Non-Traded Sector: Evidence from Brazil by : Rafael Machado Parente
Download or read book Non-traded Gains From Trade - Selection in the Non-Traded Sector: Evidence from Brazil written by Rafael Machado Parente and published by International Monetary Fund. This book was released on 2023-12-22 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate how trade shocks affect the allocation of labor across plants at the local labor market level. Using Brazil’s import liberalization as a quasi-natural experiment, we uncover a new margin for the gains from trade: the reallocation of labor from smaller to larger producers in the non-traded sector. We find that in response to liberalization, larger non-traded producers self-select into importing, expanding as they gain access to inputs from abroad. We then develop a parsimonious model of heterogeneous producers incorporating this mechanism. The theory is consistent with the empirical findings and show that reallocation among non-traded producers is welfare-enhancing. In contrast, this reallocation effect disappears when all nontraded producers make the same importing decision.
Book Synopsis Institutions, Informality, and Wage Flexibility by : Mr.Marcello M. Estevão
Download or read book Institutions, Informality, and Wage Flexibility written by Mr.Marcello M. Estevão and published by International Monetary Fund. This book was released on 2012-03-01 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: Even though institutions are created to protect workers, they may interfere with labor market functioning, raise unemployment, and end up being circumvented by informal contracts. This paper uses Brazilian microeconomic data to show that the institutional changes introduced by the 1988 Constitution lowered the sensitivity of real wages to changes in labor market slack and could have contributed to the ensuing higher rates of unemployment in the country. Moreover, the paper shows that states that faced higher increases in informality (i.e., illegal work contracts) following the introduction of the new Constitution tended to have smaller drops in wage responsiveness to macroeconomic conditions, thus suggesting that informality serves as a escape valve to an over-regulated environment.
Download or read book Sticky Feet written by Claire H. Hollweg and published by World Bank Publications. This book was released on 2014-07-03 with total page 123 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report quantifies labor mobility costs in developing countries and simulates the implied adjustment paths of employment and wages following a change in trade policy. High mobility costs are shown to reduce the potential gains to trade reform.
Book Synopsis the determinants of rising informality in brazil: evidence from gross worker flows by : William Mahoney, Mariano Bosch, Edwin Goni
Download or read book the determinants of rising informality in brazil: evidence from gross worker flows written by William Mahoney, Mariano Bosch, Edwin Goni and published by World Bank Publications. This book was released on 2007 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: This paper studies gross worker flows to explain the rising informality in Brazilian metropolitan labor markets from 1983 to 2002. This period covers two economic cycles, several stabilization plans, a far-reaching trade liberalization, and changes in labor legislation through the Constitutional reform of 1988. First, focusing on cyclical patterns, the authors confirm that for Brazil, the patterns of worker transitions between formality and informality correspond primarily to the job-to-job dynamics observed in the United States, and not to the traditional idea of the informal queuing for jobs in a segmented market. However, the analysis also confirms distinct cyclical patterns of job finding and separation rates that lead to the informal sector absorbing more labor during downturns. Second, focusing on secular movements in gross flows and the volatility of flows, the paper finds the rise in informality to be driven primarily by a reduction in job finding rates in the formal sector. A small fraction of this is driven by trade liberalization, and the remainder seems driven by rising labor costs and reduced flexibility arising from Constitutional reform.
Book Synopsis Local Labor Market Conditions and Crime by : Rafael Dix-Carneiro
Download or read book Local Labor Market Conditions and Crime written by Rafael Dix-Carneiro and published by . This book was released on 2016 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper estimates the effect of local labor market conditions on crime in a developing country with high crime rates. Contrary to the previous literature, which has focused exclusively on developed countries with relatively low crime rates, we find that labor market conditions have a strong effect on homicides. We exploit the 1990s trade liberalization in Brazil as a natural experiment generating exogenous shocks to local labor demand. Regions facing more negative shocks experience large relative increases in crime rates in the medium term, but these effects virtually disappear in the long term. This pattern mirrors the labor market responses to the trade shocks. Using the trade liberalization episode to design an instrumental variables strategy, we find that a 10% reduction in expected labor market earnings (employment rate × earnings) leads to a 39% increase in homicide rates. Our results highlight an additional dimension of adjustment costs following trade shocks that has so far been overlooked in the literature.
