Informal Jobs and Trade Liberalisation in Argentina

Acosta, P. & Montes-Rojas, G. (2014). Informal Jobs and Trade Liberalisation in Argentina. Journal of Development Studies, doi: 10.1080/00220388.2014.919381

[img]
Preview
PDF
Download (436kB) | Preview

Abstract

Rapid trade liberalisation can exert profound effects on labour markets. Domestic firms, to sustain competitiveness for survival, could react through cutting labour benefits to achieve cost reductions. Alternatively, trade liberalisation may alter the industry composition of firms changing the aggregate formality rates. This paper studies the relationship between trade liberalisation and informality in Argentina. Using manufacturing industry-level data for 1992-2003, the results confirm the hypothesis that trade increases informality in industries that experience sudden foreign competition. This explains about a third of the increase in informality. Sectors with higher investment ratios are able to neutralize and reverse this effect.

Item Type: Article
Additional Information: This is an Accepted Manuscript of an article published in Journal of Development Studies on 20 June 2014, available online: http://www.tandfonline.com/10.1080/00220388.2014.919381.
Uncontrolled Keywords: informality, trade liberalisation, Argentina
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
Divisions: School of Social Sciences > Department of Economics
URI: http://openaccess.city.ac.uk/id/eprint/3859

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics