ENFORCEMENT OF LABOUR REGULATION AND THE LABOUR MARKET EFFECTS OF TRADE: EVIDENCE FROM BRAZIL

• 成果类型: Article
• 署名作者: Ponczek, Vladimir; Ulyssea, Gabriel
• 署名单位: Getulio Vargas Foundation; University of London; University College London
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1093/ej/ueab052
• 发表日期: 2022
• 页码: 361-390
• 关键词: Informal sector; LIBERALIZATION; CONSEQUENCES; flexibility; shocks; FIRMS

摘要

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.