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Payroll tax, job search and informality

Authors: Zoraida Fernandez The present paper examines the quantitative effects of a labor market policy on the Bolivian economy. In addition, we study the links between demand and supply of labor in economies with informal sector; including wage bargaining by the method of Nash and worker heterogeneity with respect to formal-sector productivity. A simulation is […]

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Voluntary and involuntary labor informality

Authors: Rolando Morales, Danilo Agramont and Mónica Cueto By classifying workers in terms of being dependent or independent (micro entrepreneur and the self-employed) and in terms of formal or informal, this paper raises some important questions:1) is it possible to identify a relation between the idiosyncratic characteristics of workers with their election of a labor category?; […]

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International Trade and Employment in the Bolivian Context

Authors: Gabriel Loza Telleria This paper examines the relationship between international trade and employment in the Bolivian economy in light of major trade agreements and the export boom (2004-2013). This study finds that the commodity prices boom bore a relationship to the decline in the unemployment rate and that, while the post-boom period (2014 to the present) has not […]

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Dutch Disease and the Labor Market in Bolivia

Authors: Rolando Morales Anaya, Samuel Alarcón, and Rodrigo Gonzales In the last 10 years, Latin America and especially Bolivia has experienced a period of unprecedented boom induced by substantial revenues on the external front, due to the rise in the prices of exports, remittances and capital flows. This paper argues that Bolivia went through Dutch disease […]

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Trade and frictional unemployment in the global economy

Authors: Frédéric Robert-Nicoud, Céline Carrère, Anja Grujovic We develop a multi-country, multi-sector trade model with labor market frictions and equilibrium unemployment. Trade opening leads to a reduction in unemployment if it raises real wages and reallocates labor towards sectors with lower-than-average labor market frictions. We estimate sector-specific labor market frictions and trade elasticities using employment data from […]

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Institutions, human capital and exports in developing Countries: a firm-level approach

Author(s): Bethuel Kinyanjui Kinuthia The study examines the relationship in East Africa between institutions, human capital and firm decisions to enter the export market. I use the World Bank’s Enterprise Survey (ES) data launched in the 2008-2013s. The ES database covers over 2,000 manufacturing firms in Kenya (713), Tanzania (723) and Uganda (640), and provides information […]

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Road and Development: some empirical evidences from Brazilian experience.

Authors: Cristine Pinto,  Flávia Chein This paper investigates the role of infrastructure improvements, especially those related to transport network, on regional development. It aims to verify that the greater proximity to markets, by reducing transportation costs, provides greater regional development, causing urbanization and changes in local labor markets, that   leads to improvements in the living conditions […]

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Informality in an Economy with Active Labor Courts

Authors: Vladimir Ponczek, Luis Araujo, André Portela Job regulations and the justice branch interfere on several aspects of labor contracts. We build a model which explores the role of labor courts on the wage distribution in both formal and informal sectors. We obtain that the presence of active labor courts produces a negative relation between the […]

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Trade openness effects through price channels on firms’s informal employment: The case of Peru

Authors: Jorge Davalos This paper seeks to estimate the impact of sector specific international price shocks on informal employment demand. Such impact is specified by a theoretical model where law enforcement (regulation) is an important determinant of the formal-informal employment demand allocation decision. It is shown that trade-openness effects on informality are channeled through prices, thus the proposed price-informality […]

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High-Income Export Destinations, Quality and Wages

Authors: Irene BRAMBILLA and Guido PORTO This paper establishes a link between the income level of the destination countries and the level of average wages in the exporting country across the world economy. We use cross-country panel data to set up an instrumental variable model of high-income export destinations and wages. We find robust evidence […]

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A Mapping of Labor Mobility Costs in the Developing World

Authors: Erhan ARTUC, Daniel LEDERMAN, and Guido PORTO Published Papers: Forthcoming in Journal of International Economics. Estimates of labor mobility costs are needed to assess the responses of employment and wages to trade shocks when factor adjustment is costly. Available methods to estimate those costs rely on panel data, which are seldom available in developing countries. […]

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Wage and Employment Gains From Exports Evidence from Developing Countries

Authors: Irene BRAMBILLA, Nicolas DEPETRIS-CHAUVIN, and Guido PORTO We systematically explore the relationship between exports, employment, and wages in developing countries. Using a combination of firm level data for most developing countries and cross-country, industrial-level data, we quantitatively document the potential gains from export opportunities. On the export market side, we investigate the role of […]

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What Really Drives Innovation In Exporting Firms? A Study of the Role of Management Skill in Ghanaian Manufacturing Firms

Authors: Francis MULANGU and Michael KOTTOH The paper estimates the impact of exports on firms’ investments in innovation (new technology and skills); and evaluates the role of management in determining the scale of this impact. We report two main findings: We find that exports have a positive impact on firms’ accumulation of technology and skills. […]