Publication:
Some Simple Analytics of Trade and Labor Mobility

dc.contributor.authorArtuc, Erhan
dc.contributor.authorChaudhuri, Shubham
dc.contributor.authorMcLaren, John
dc.date.accessioned2014-12-03T19:43:59Z
dc.date.available2014-12-03T19:43:59Z
dc.date.issued2014-11
dc.description.abstractThis paper studies a simple, tractable model of labor adjustment in a trade model that allows researchers to analyze the economy's dynamic response to trade liberalization. Since it is a neoclassical market-clearing model, duality techniques can be employed to study the equilibrium and, despite its simplicity, a rich variety of properties emerge. The model generates gross flows of labor across industries, even in the steady state; persistent wage differentials across industries; gradual adjustment to a liberalization; and anticipatory adjustment to a pre-announced liberalization. Pre-announcement induces anticipatory flight from the liberalizing sector, driving up wages there temporarily and giving workers remaining there what this paper calls "anticipation rents." By this process, pre-announcement makes liberalization less attractive to export-sector workers and more attractive to import-sector workers, eventually making workers unanimous either in favor of or in opposition to liberalization. Based on these results, the paper identifies many pitfalls to conventional methods of empirical study of trade liberalization that are based on static models.en
dc.identifierhttp://documents.worldbank.org/curated/en/2014/11/20349473/some-simple-analytics-trade-labor-mobility
dc.identifier.urihttps://hdl.handle.net/10986/20627
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank Group, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 7089
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectADJUSTMENT ASSISTANCE
dc.subjectADJUSTMENT COST
dc.subjectADJUSTMENT COSTS
dc.subjectADJUSTMENT PROCESS
dc.subjectAFFECTED WORKERS
dc.subjectAVERAGE WAGES
dc.subjectBENCHMARK
dc.subjectCETERIS PARIBUS
dc.subjectCOMPENSATING WAGE DIFFERENTIALS
dc.subjectCONSUMER PRICE INDEX
dc.subjectDEMAND CURVES
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT POLICY
dc.subjectDISCOUNTED VALUE
dc.subjectDISTRIBUTION OF INCOME
dc.subjectDOMESTIC PRICE
dc.subjectDOWNWARD PRESSURE
dc.subjectECONOMIC ACTIVITY
dc.subjectECONOMIC INEQUALITY
dc.subjectECONOMIC THEORY
dc.subjectECONOMICS
dc.subjectELASTICITY
dc.subjectELASTICITY OF LABOR SUPPLY
dc.subjectELASTICITY OF SUBSTITUTION
dc.subjectEMPLOYMENT EFFECTS
dc.subjectEMPLOYMENT LEVELS
dc.subjectEMPLOYMENT RESEARCH
dc.subjectEQUILIBRIUM
dc.subjectEQUILIBRIUM UNEMPLOYMENT
dc.subjectEXPECTED VALUE
dc.subjectEXPECTED WAGE
dc.subjectEXPORT MARKETS
dc.subjectEXPORT SECTOR
dc.subjectEXPORT SUBSIDY
dc.subjectEXPORTS
dc.subjectFEDERAL RESERVE SYSTEM
dc.subjectFREE TRADE
dc.subjectFREE TRADE AGREEMENT
dc.subjectGDP
dc.subjectGENERAL EQUILIBRIUM
dc.subjectGLOBALIZATION
dc.subjectHIGH WAGES
dc.subjectHUMAN CAPITAL
dc.subjectIMPORT COMPETITION
dc.subjectIMPORTS
dc.subjectINDUSTRY WAGE
dc.subjectINTERNATIONAL ECONOMICS
dc.subjectINTERNATIONAL TRADE
dc.subjectJOB SEPARATION
dc.subjectJOBS
dc.subjectLABOR ADJUSTMENT
dc.subjectLABOR ALLOCATION
dc.subjectLABOR ALLOCATIONS
dc.subjectLABOR DEMAND
dc.subjectLABOR FORCE
dc.subjectLABOR MARKET
dc.subjectLABOR MARKET RIGIDITIES
dc.subjectLABOR MARKETS
dc.subjectLABOR MOBILITY
dc.subjectLABOR REALLOCATION
dc.subjectLABOR SUPPLIES
dc.subjectLABOUR
dc.subjectLOCAL LABOR MARKET
dc.subjectLOCAL LABOR MARKETS
dc.subjectMANUFACTURING INDUSTRIES
dc.subjectMANUFACTURING WAGE
dc.subjectMANUFACTURING WAGES
dc.subjectMARGINAL COST
dc.subjectMARGINAL PRODUCTS
dc.subjectMARGINAL VALUE
dc.subjectNATIONAL INCOME
dc.subjectNEOCLASSICAL MODELS
dc.subjectOCCUPATION
dc.subjectOCCUPATIONAL MOBILITY
dc.subjectOPEN ECONOMY
dc.subjectOPTIMAL ALLOCATION
dc.subjectOPTIMIZATION
dc.subjectPOLITICAL ECONOMY
dc.subjectPOLITICAL ECONOMY OF TRADE
dc.subjectPREFERENTIAL AGREEMENT
dc.subjectPRESENT VALUE
dc.subjectPRODUCT PRICES
dc.subjectPRODUCTION FUNCTION
dc.subjectPRODUCTION FUNCTIONS
dc.subjectPROTECTIONISM
dc.subjectREAL WAGE
dc.subjectREAL WAGES
dc.subjectRENTS
dc.subjectRISK NEUTRAL
dc.subjectTARIFF BINDINGS
dc.subjectTARIFF PROTECTION
dc.subjectTARIFF REDUCTION
dc.subjectTARIFF REDUCTIONS
dc.subjectTERMS OF TRADE
dc.subjectTRADE ADJUSTMENT
dc.subjectTRADE ADJUSTMENT ASSISTANCE
dc.subjectTRADE BLOCK
dc.subjectTRADE BLOCKS
dc.subjectTRADE DIVERSION
dc.subjectTRADE LIBERALIZATION
dc.subjectTRADE MODEL
dc.subjectTRADE MODELS
dc.subjectTRADE POLICY
dc.subjectTRADE REGIME
dc.subjectTRAINING COSTS
dc.subjectUNEMPLOYMENT
dc.subjectURUGUAY ROUND
dc.subjectWAGE DIFFERENTIAL
dc.subjectWAGE DIFFERENTIALS
dc.subjectWAGE EFFECTS
dc.subjectWAGE INCREASE
dc.subjectWAGE INEQUALITY
dc.subjectWAGE LEVELS
dc.subjectWAGE LOSS
dc.subjectWAGES
dc.subjectWORKER
dc.subjectWORKERS
dc.subjectWTO
dc.titleSome Simple Analytics of Trade and Labor Mobilityen
dspace.entity.typePublication
okr.date.disclosure2014-11-15
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2014/11/20349473/some-simple-analytics-trade-labor-mobility
okr.globalpracticeTrade and Competitiveness
okr.globalpracticeSocial Protection and Labor
okr.identifier.doi10.1596/1813-9450-7089
okr.identifier.externaldocumentum000158349_20141104145636
okr.identifier.internaldocumentum20349473
okr.identifier.reportWPS7089
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2014/11/04/000158349_20141104145636/Rendered/PDF/WPS7089.pdfen
okr.topicInternational Economics and Trade::Trade Policy
okr.topicEconomic Theory and Research
okr.topicMacroeconomics and Economic Growth::Political Economy
okr.topicSocial Protections and Labor::Labor Policies
okr.topicSocial Protections and Labor::Labor Markets
okr.unitTrade and International Integration Team, Development Research Group; and the Poverty Global Practice Group
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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