Margins of Labor Market Adjustment to Trade Rafael Dix-Carneiro, Brian K. Kovak Abstract We use both longitudinal administrative data and cross-sectional household survey data to study the margins of labor market adjustment following Brazil’s early 1990s trade liberalization. We document how workers and regional labor markets adjust to trade-induced changes in local labor demand, examining […]
BREAD Working Paper No. 585, January 2021
Trade and Informality in the Presence of Labor Market Frictions and Regulations Rafael Dix-Carneiro, Pinelopi Koujianou Goldberg, Costas Meghir, Gabriel Ulyssea Abstract We build an equilibrium model of a small open economy with labor market frictions and imperfectly enforced regulations. Heterogeneous firms sort into the formal or informal sector. We estimate the model using data […]