Labor Market Distortions Employment and Growth PDF Download

Author: Raphael Bergoeing
Publisher:
ISBN:
Category : Chile
Languages : en
Pages : 24

View

Book Description

Author: Pierre-Richard Agénor
Publisher: International Monetary Fund
ISBN: 1451854781
Category : Business & Economics
Languages : en
Pages : 98

View

Book Description
This paper examines the role of the labor market in the transmission process of adjustment policies in developing countries. It begins by reviewing the recent evidence regarding the functioning of these markets. It then studies the implications of wage inertia, nominal contracts, labor market segmentation, and impediments to labor mobility for stabilization policies. The effect of labor market reforms on economic flexibility and the channels through which labor market imperfections alter the effects of structural adjustment measures are discussed next. The last part of the paper identifies a variety of issues that may require further investigation, such as the link between changes in relative wages and the distributional effects of adjustment policies.

Author: Thomas Warren Hertel
Publisher: World Bank Publications
ISBN: 2004121610
Category : China
Languages : en
Pages : 41

View

Book Description
The authors find that reform of the Hukou system has the most significant impact on aggregate economic activity, as well as income distribution. Whereas the land market reform primarily benefits the agricultural households, this reform's primary beneficiaries are the rural households currently sending temporary migrants to the city. By reducing the implicit tax on temporary migrants, Hukou reform boosts their welfare and contributes to increased rural-urban migration. The combined effect of both factor market reforms is to reduce the urban-rural income ratio dramatically, from 2.59 in 2007 under the authors' baseline scenario to 2.27. When viewed as a combined policy package, along with WTO accession, rather than increasing inequality in China, the combined impact of product and factor market reforms significantly reduces rural-urban income inequality. This is an important outcome in an economy currently experiencing historic levels of rural-urban inequality"--Abstract.

Author: Martín Rama
Publisher: World Bank Publications
ISBN:
Category : Commercial policy
Languages : en
Pages : 42

View

Book Description

Author: Robert Shimer
Publisher: Princeton University Press
ISBN: 1400835232
Category : Business & Economics
Languages : en
Pages : 189

View

Book Description
Labor Markets and Business Cycles integrates search and matching theory with the neoclassical growth model to better understand labor market outcomes. Robert Shimer shows analytically and quantitatively that rigid wages are important for explaining the volatile behavior of the unemployment rate in business cycles. The book focuses on the labor wedge that arises when the marginal rate of substitution between consumption and leisure does not equal the marginal product of labor. According to competitive models of the labor market, the labor wedge should be constant and equal to the labor income tax rate. But in U.S. data, the wedge is strongly countercyclical, making it seem as if recessions are periods when workers are dissuaded from working and firms are dissuaded from hiring because of an increase in the labor income tax rate. When job searches are time consuming and wages are flexible, search frictions--the cost of a job search--act like labor adjustment costs, further exacerbating inconsistencies between the competitive model and data. The book shows that wage rigidities can reconcile the search model with the data, providing a quantitatively more accurate depiction of labor markets, consumption, and investment dynamics. Developing detailed search and matching models, Labor Markets and Business Cycles will be the main reference for those interested in the intersection of labor market dynamics and business cycle research.

Author: Trang Hoang
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

View

Book Description
Using Vietnamese firm-level data from 2000 to 2010, this paper measures firm-level labor market distortion with a nonparametric production function approach and examines the impacts of an export shock on such measured distortion. Our measurement indicates substantial wedges between equilibrium marginal revenue products of labor (MRPL) and wages, suggesting that marginal workers get paid roughly 45% of their MRPL. Following the US-Vietnam Bilateral Trade Agreements (BTA) that significantly improves market access for Vietnamese manufacturers, we find that those firms in industries exposed more to the US tariff reductions see relatively faster employment growth, faster increase in labor share, and faster decline in their incurred labor market distortion. The comprehensive nature of Vietnamese firm-level data allows us to make two further contributions. First, we exploit consistent gender composition information to measure distortion separately for male and female workers. We find that the average distortion is 44% higher for female relative to male workers. In addition, the overall reduction of labor market distortion ensued from the BTA is largely driven by the declining distortion for female workers. Second, we exploit data on other formal sectors of the economy to investigate whether BTA exposure in manufacturing spillovers to other sectors via local labor market linkages. We find some evidence for spillovers in terms of employment and labor share.

Author: Charles F. Stone
Publisher:
ISBN:
Category : Foreign trade and employment
Languages : en
Pages : 68

View

Book Description

Author: Martin Rama
Publisher:
ISBN:
Category :
Languages : en
Pages :

View

Book Description

Author: Lyn Squire
Publisher:
ISBN:
Category : Developing countries
Languages : en
Pages : 186

View

Book Description

Author: Sebastian Edwards
Publisher:
ISBN:
Category : Free trade
Languages : en
Pages : 72

View

Book Description
The purpose of this paper is to provide a typology of different labor market configurations and investigate how two major structural adjustment policies, namely a trade liberalization reform and the relaxation of capital controls, affect the level of aggregate employment and the rate of unemployment. We consider a number of models starting from the traditional Australian approach. We then analyze a multiple sectors intertemporal setting and a model with uncertainty and search. We identify situations under which structural adjustment results in unemployment.