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Download or read book Trade Liberalization and Labor Market Adjustment in Brazil written by and published by . This book was released on 2003 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Nina Pavcnik
Publisher :
ISBN 13 :
Total Pages : 52 pages
Book Rating : 4.:/5 (319 download)
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:
Author : Rafael Dix-Carneiro
Publisher :
ISBN 13 :
Total Pages : 88 pages
Book Rating : 4.:/5 (1 download)
Download or read book Margins of Labor Market Adjustment to Trade written by Rafael Dix-Carneiro and published by . This book was released on 2017 with total page 88 pages. Available in PDF, EPUB and Kindle. Book excerpt: We use both longitudinal administrative data and cross-sectional household survey data to study the margins of labor market adjustment following Brazil's early 1990s trade liberalization. We document how workers and regional labor markets adjust to trade-induced changes in local labor demand, examining various adjustment margins, including earnings and wage changes; interregional migration; shifts between tradable and nontradable employment; and shifts between formal employment, informal employment, and non-employment. Our results provide insight into the regional labor market effects of trade, and have important implications for policies that address informal employment and that assist trade-displaced workers.
Author : Rafael Dix-Carneiro
Publisher :
ISBN 13 :
Total Pages : 85 pages
Book Rating : 4.:/5 (93 download)
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.
Author : Gabriel Ulyssea
Publisher :
ISBN 13 :
Total Pages : 46 pages
Book Rating : 4.:/5 (13 download)
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.
Author : Ricardo Paes de Barros
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (119 download)
Download or read book Labor Market Regulations and the Demand for Labor in Brazil written by Ricardo Paes de Barros and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The main objective of this study is to evaluate the impact of the 1988 changes in labor market regulations on the level of employment and on the time required by firms to adjust their employment level to economic fluctuations. From the many aspects of labor market regulations, this study will concentrate on those that directly influence variable labor and dismissal costs. Evaluating the impact of changes in these costs on the level of employment and speed of adjustment will be based on estimates of structural dynamic models for labor demand at different points in time before and after the 1988 constitutional change. The empirical strategy will be to estimate such models from microlongitudinal monthly data for a sample of 5,000 on manufacturing establishments, which cover the period from January 1985 to December 1997. To try to isolate the effect of the constitutional change on the parameters of the demand function from the effect of the process of trade liberalization and of the series of stabilization plans that also occurred in the end of the 80's, we regress our monthly estimates of these parameters on a temporal indicator for the 1988 constitutional change, controlling for a variety of other macroeconomic indicators.
Author : Rafael Dix-Carneiro
Publisher :
ISBN 13 :
Total Pages : 60 pages
Book Rating : 4.:/5 (13 download)
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.
Author : Claire H. Hollweg
Publisher : World Bank Publications
ISBN 13 : 1464802645
Total Pages : 123 pages
Book Rating : 4.4/5 (648 download)
Download or read book Sticky Feet written by Claire H. Hollweg and published by World Bank Publications. This book was released on 2014-06-26 with total page 123 pages. Available in PDF, EPUB and Kindle. Book excerpt: The analysis in this report confirms the findings of previous studies that trade liberalization improves aggregate welfare and is in the long run associated with higher employment and wages. The analysis addresses a major gap in the literature, which has heretofore provided limited evidence about the trade-related adjustment costs faced by workers in developing countries and how they are affected by mobility costs. Labor market frictions reduce the potential gains from trade reform. For a tariff reduction in a given sector, the resulting change in relative prices raises real wages in some sectors and reduces them in the liberalized sector. The emerging wage gaps lead to labor reallocation. But workers typically incur costs to change jobs; the higher the mobility costs, the slower the transition to the new labor market steady state. Workers’ sticky feet result in foregone welfare gains from trade. This report presents an estimation strategy for capturing mobility costs when only net flows of workers between industries are observed, generating cross-country estimates for 47 developed and developing countries. The basic analytical approach is then refined to take advantage of micro-level data on worker transitions and wages when gross flows can be observed to derive mobility cost estimates that account for sector and formality status. These cost estimates are used to model the dynamic paths of labor reallocation between sectors and in and out of the labor force, the associated wage paths, and the resulting labor adjustment costs. The main findings of the report are that: labor mobility costs in developing countries are high; foregone trade gains due to frictions in labor mobility can also be substantial; workers bear the brunt of adjustment costs; mobility costs and labor market adjustments to trade-related shocks vary by industry, firm type, and worker type; entry costs are significantly higher for formal than for informal employment; trade reforms increase economy-wide wages and employment; and workers displaced by plant closings are likely to face relatively long adjustment periods. The findings provide insights that could be helpful to policymakers hoping to mitigate negative short-term consequences of trade liberalization and facilitate labor adjustment.
Author : Rafael Dix-Carneiro
Publisher :
ISBN 13 :
Total Pages : 90 pages
Book Rating : 4.:/5 (13 download)
Download or read book Trade Reform and Regional Dynamics written by Rafael Dix-Carneiro and published by . This book was released on 2017 with total page 90 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-speci?c tari? cuts 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 ?nd that the impact of local shocks is dissipated over time through wage-equalizing migration. Instead, it ?nds steadily growing e?ects of local shocks on regional formal sector wages and employment for 20 years. This ?nding can be rationalized in a simple equilibrium model with two complementary factors of production, labor and industry-speci?c 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 a?ected 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 ?nd 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 a?ected regions.
Author : Ricardo Paes de Barros
Publisher :
ISBN 13 :
Total Pages : 94 pages
Book Rating : 4.:/5 (247 download)
Download or read book Labor Market Regulations and the Demand for Labor in Brazil written by Ricardo Paes de Barros and published by . This book was released on 1999 with total page 94 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Isis Gaddis
Publisher :
ISBN 13 :
Total Pages : 36 pages
Book Rating : 4.:/5 (13 download)
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.
Author : Francisco H. G. Ferreira
Publisher :
ISBN 13 :
Total Pages : 64 pages
Book Rating : 4.:/5 (318 download)
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.
Author : Guido Gustavo Porto
Publisher : Centre for Economic Policy Research
ISBN 13 : 9781907142086
Total Pages : 0 pages
Book Rating : 4.1/5 (42 download)
Download or read book Trade Adjustment Costs in Developing Countries written by Guido Gustavo Porto and published by Centre for Economic Policy Research. This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book summarizes the state of knowledge in the economic literature on trade and development regarding the costs of adjustment to trade openness and how adjustment takes place in developing countries. The contributions by leading experts look at: *the magnitude of trade adjustment costs in the presence of frictions in factor markets; *the impacts of trade shocks and greater trade openness; *the factors that affect the way trade, especially exports, adjust; *trade adjustment assistance programs in the U.S. and compensation schemes for farmers in the EU. The book will be relevant to academics, students, policy-makers and trade practitioners alike. Too often, policymakers avoid more open trade because they fear the adjustment costs, while proponents of such open trade overlook or dismiss them. This comprehensive set of papers takes these costs seriously and helps us appreciate where both sides go wrong. It provides an extremely useful survey of what we know and what we still need to know if the benefits from trade are to be more widespread within developing countries --Robert Lawrence, Albert L Williams Professor of International Trade Harvard Kennedy School.Trade expansion generates huge potential gains to developing countries, but it may also produce pains to specific socio-economic groups. This volume by world-renowned trade and labour experts offers the first comprehensive assessment of how trade adjustment takes place in developing countries, what its costs are and how policy can help mitigate them. As such it is an important and timely contribution to the debate on the costs and benefits of globalisation for developing countries.A --Andre Sapir, Professor of Economics, Solvay Brussels School of Economics and Management, and former Economic Advisor to the President of the European Commission
Author :
Publisher : World Bank Publications
ISBN 13 : 9780821326800
Total Pages : 404 pages
Book Rating : 4.3/5 (268 download)
Download or read book Labor markets in an era of adjustment written by and published by World Bank Publications. This book was released on 1994 with total page 404 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Francisco Carneiro
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (137 download)
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.
Author : Susan Horton
Publisher :
ISBN 13 :
Total Pages : 404 pages
Book Rating : 4.:/5 (318 download)
Download or read book Labor Markets in an Era of Adjustment: Issues papers written by Susan Horton and published by . This book was released on 1994 with total page 404 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Pierre-Richard Agénor
Publisher : International Monetary Fund
ISBN 13 : 1451854781
Total Pages : 98 pages
Book Rating : 4.4/5 (518 download)
Download or read book The Labor Market and Economic Adjustment written by Pierre-Richard Agénor and published by International Monetary Fund. This book was released on 1995-11-01 with total page 98 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the role of the labor market in the transmission process of adjustment policies in developing countries. It begins by reviewing the recent evidence regarding the functioning of these markets. It then studies the implications of wage inertia, nominal contracts, labor market segmentation, and impediments to labor mobility for stabilization policies. The effect of labor market reforms on economic flexibility and the channels through which labor market imperfections alter the effects of structural adjustment measures are discussed next. The last part of the paper identifies a variety of issues that may require further investigation, such as the link between changes in relative wages and the distributional effects of adjustment policies.
