Enforcement of Labour Regulation and the Labour Market Effects of Trade: Evidence from Brazil

Autor:	Vladimir Ponczek, Gabriel Ulyssea
Rok vydání:	2021
Předmět:	Economics and Econometrics
Zdroj:	The Economic Journal. 132:361-390
ISSN:	1468-0297 0013-0133
Popis:	How does enforcement of labour regulations shape the labour market effects of trade? We combine local economic shocks generated by the unilateral trade liberalisation in Brazil and enforcement variation across regions to show that regions with stricter enforcement observed: (i) lower informality; (ii) larger losses in overall employment; (iii) greater reductions in the number of formal plants. Regions with weaker enforcement experienced opposite effects. All these effects are concentrated on low-skill workers. Our results indicate that greater flexibility introduced by informality allows both formal firms and low-skill workers to cope better with adverse labour market shocks.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::3692a62272109d17a726a04c04da2762 https://doi.org/10.1093/ej/ueab052 Zobrazit plný text záznamu