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Trade, informal employment and labor adjustment costs (English)

Informal employment is ubiquitous in developing countries, but few studies have estimated workers' switching costs between informal and formal employment. This paper builds on the empirical literature grounded in discrete choice models to estimate these costs. The results suggest that inter-industry labor mobility costs are large, but entry costs into informal employment are significantly lower than the costs of entry in formal employment. Simulations...
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Arias Vazquez,Francisco Javier; Artuc,Erhan; Lederman,Daniel; Rojas Alvarado,Luis Diego.

Trade, informal employment and labor adjustment costs (English). Policy Research working paper ; no. WPS 6614 Washington, DC: World Bank. http://documents.worldbank.org/curated/en/391701468149405260

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