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.
Bibliographic Details
| Main Authors: |
Arias, Javier,
Artuc, Erhan,
Lederman, Daniel,
Rojas, Diego |
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| Format: | Policy Research Working Paper
biblioteca
|
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| Language: | English
en_US |
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| Published: |
World Bank, Washington, DC
2013-09
|
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| Subjects: | ADJUSTMENT PROCESS,
AGRICULTURE,
AVERAGE WAGE,
AVERAGE WAGES,
COMPARATIVE ADVANTAGE,
COMPARATIVE ANALYSIS,
CONSUMER PRICE INDEX,
DEVELOPMENT ECONOMICS,
DEVELOPMENT POLICY,
DISCOUNTED VALUE,
DISCUSSIONS,
DISPLACEMENT,
DRIVERS,
ECONOMETRICS,
ECONOMIC RESEARCH,
ECONOMIC SECTORS,
ECONOMICS,
EMPLOYMENT INCREASES,
EMPLOYMENT SHARE,
EMPLOYMENT STATUS,
ENTREPRENEURIAL ABILITY,
ENTRY COST,
ENTRY COSTS,
EXCESSIVE REGULATION,
EXPECTED VALUES,
EXPECTED WAGES,
EXPORTS,
GENERAL EQUILIBRIUM,
HAZARDS,
HOUSEHOLD SURVEY,
HUMAN CAPITAL,
INFORMAL ECONOMY,
INFORMAL EMPLOYMENT,
INFORMAL SECTOR,
INTERNATIONAL TRADE,
JOBS,
LABOR ADJUSTMENT,
LABOR ADJUSTMENT COSTS,
LABOR ALLOCATION,
LABOR ALLOCATIONS,
LABOR DEMAND,
LABOR FLOW,
LABOR FORCE,
LABOR MARKET,
LABOR MARKET RIGIDITIES,
LABOR MARKETS,
LABOR MOBILITY,
LABOR REALLOCATION,
LABOR SHARE,
LABOR SUPPLY,
LABOUR,
MALE WORKERS,
MANUFACTURING INDUSTRY,
OCCUPATIONAL MOBILITY,
OPPORTUNITY COST,
OPTIMIZATION,
PREVIOUS SECTION,
PRODUCTION FUNCTION,
PRODUCTION FUNCTIONS,
PRODUCTIVITY,
PROPERTY RIGHTS,
REAL WAGE,
REAL WAGES,
RISK NEUTRAL,
SALARIED WORKERS,
SECURE PROPERTY RIGHTS,
SOCIAL PROTECTION,
SOCIAL SECURITY,
TOTAL EMPLOYMENT,
TRADE LIBERALIZATION,
TRADE POLICY,
TRADE REFORMS,
UNEMPLOYED,
UNEMPLOYMENT,
VALUE ADDED,
WAGE BILL,
WAGE GAP,
WAGE INEQUALITY,
WORK IN PROGRESS,
WORKER,
WORKERS,
WORKING,
WORKING CONDITIONS, |
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| Online Access: | http://documents.worldbank.org/curated/en/2013/09/18279475/trade-informal-employment-labor-adjustment-costs
http://hdl.handle.net/10986/16841
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