Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/127662
Authors: 
Artuç, Erhan
Lederman, Daniel
Porto, Guido
Year of Publication: 
2013
Series/Report no.: 
Documento de Trabajo 146
Abstract: 
Estimates of labor mobility costs are needed to assess the responses of employment and wages to a trade shock when factor adjustment is costly. Available methods to estimate those costs rely on panel data, which are seldom available in developing countries. In this paper, we propose a method to estimate mobility costs using data that is more easily obtainable worldwide. Our estimator matches observed employment flows with those flows predicted by a model of costly labor adjustment. We estimate a mapping of labor mobility costs for the developing world and we use those estimates to explore the response of labor markets (wages and employment) to trade policy.
Subjects: 
World Labor Mobility Costs
Wage Dynamics
Employment Dynamics
JEL: 
F16
D58
J2
J6
Document Type: 
Working Paper

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