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DECTI Trade Seminar: Trade Liberalization, Labor Reforms and Formal-Informal Employment Dynamics

Location:   H2-480
Begins:   Oct 15, 2010 09:30
Ends:   Oct 15, 2010 11:00
Contact Person:   Yasmin D Souza

SpeakerMariano Bosch, University of Alicante

Abstract: This paper studies gross worker flows to explain the rising informality in Brazilian metropolitan labor markets from 1983-2002. It first conceptually analyzes the likely effects of the dramatic labor market and trade reforms of the late 1980s in a search and matching context. It then estimates the impact of these factors on relative job flows and then the resultant increase in informality. We find that trade liberalization plays a very small role while the rise in firing costs and union power appear more important.

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