Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/90029
Authors: 
Cosar, A. Kerem
Guner, Nezih
Tybout, James
Year of Publication: 
2013
Series/Report no.: 
IZA Discussion Paper 7718
Abstract: 
This paper explores the combined effects of reductions in trade frictions, tariffs, and firing costs on firm dynamics, job turnover, and wage distributions. It uses establishment-level data from Colombia to estimate an open economy dynamic model that links trade to job flows in a new way. The fitted model captures key features of Colombian firm dynamics and labor market outcomes, as well changes in these features during the past 25 years. Counterfactual experiments imply that integration with global product markets has increased both average income and job turnover in Colombia. In contrast, the experiments find little role for this country's labor market reforms in driving these variables. The results speak more generally to the effects of globalization on labor markets in Latin America and elsewhere.
Subjects: 
international trade
firm dynamics
size distribution
labor market frictions
inequality
JEL: 
F12
F16
E24
J64
L11
Document Type: 
Working Paper

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