A mapping of labor mobility costs in the developing world

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 esti...

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Autores principales: Artuç, Erhan, Lederman, Daniel, Porto, Guido
Formato: Articulo Documento de trabajo
Lenguaje:Inglés
Publicado: 2013
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Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/47807
http://cedlas.econo.unlp.edu.ar/download.php?file=archivos_upload/doc_cedlas146.pdf
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Sumario: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.