Trade Reforms, Labor Regulations, and Labor-Demand Elasticities: Empirical Evidence from India

Trade Reforms, Labor Regulations, and Labor-Demand Elasticities: Empirical Evidence from India

Using industry-level data disaggregated by states, this paper finds a positive impact of trade liberalization on labor-demand elasticities in the Indian manufacturing sector. These elasticities turn out to be negatively related to protection levels that vary across industries and over time. Furthermore, we find that these elasticities are not only higher for Indian states with more flexible lab...

Trade liberalization and labor demand elasticities : 14 evidence from Turkey

22 In the recent debate over the impact of trade reform on factor markets, it has been argued 23 that trade liberalization will lead to an increase in labor-demand elasticities — thus placing 24 labor markets under increased pressure. Using Turkish plant-level data spanning the course 25 of a dramatic trade liberalization, we test this idea. However, we are unable to find any 26 empirical suppo...

Import protection, exports and labor-demand elasticities: Evidence from Korea

Available online 8 October 2011 We empirically examine the impact of trade on labor demand elasticities using Korean firmlevel data. In our analysis, in addition to looking at the impact of liberalizing import restrictions, we take into account the fact that greater trade integration also leads to better and greater export possibilities. While we find that Korea's own tariffs do not have any st...

Labor Market Outcomes and Trade Reforms: The Case of India

Trade and Labor Reallocation with Heterogeneous Enforcement of Labor Regulations

Trade and Labor Reallocation with Heterogeneous Enforcement of Labor Regulations This paper revisits the question of how trade openness affects labor market outcomes in a developing country setting. We explore the fact that plants face varying degrees of exposure to global markets and to the enforcement of labor market regulations, and rely on Brazil’s currency crisis in 1999 as an exogenous so...