A Mapping of Labor Mobility Costs in Developing Countries

53 Pages Posted: 20 Apr 2016

See all articles by Erhan Artuc

Erhan Artuc

World Bank; World Bank - Development Research Group (DECRG)

Daniel Lederman

World Bank - Latin America and Caribbean Region

Guido G. Porto

World Bank; National Bureau of Economic Research (NBER)

Date Written: August 1, 2013

Abstract

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. The authors propose a method to estimate mobility costs using readily obtainable data worldwide. The estimator matches the changes in observed sectoral employment allocations with the predicted allocations from a model of costly labor adjustment. This paper estimates a world map of labor mobility costs and uses those estimates to explore the response of labor markets to trade policy.

Keywords: Labor Markets, Labor Policies, Economic Theory & Research, Work & Working Conditions, Labor Management and Relations

Suggested Citation

Artuc, Erhan and Lederman, Daniel and Porto, Guido, A Mapping of Labor Mobility Costs in Developing Countries (August 1, 2013). World Bank Policy Research Working Paper No. 6556, Available at SSRN: https://ssrn.com/abstract=2306910

Erhan Artuc

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

World Bank - Development Research Group (DECRG)

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Daniel Lederman

World Bank - Latin America and Caribbean Region ( email )

1818 H Street NW
Washington, DC 20433
United States

HOME PAGE: http://sites.google.com/site/danielledermanworldbank/

Guido Porto

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

HOME PAGE: http://econ.worldbank.org/staff/gporto

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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