Firm Dynamics, Job Turnover, and Wage Distributions in an Open Economy

A. Kerem CoÅŸar, James Tybout and Nezih Guner

No 732, Working Papers from Barcelona School of Economics

Abstract: This paper explores the combined effects of reductions in trade frictions, tariffs, and firing costs on firm dynamics, job turnover, and wage distributions. It uses establishment-level data from Colombia to estimate an open economy dynamic model that links trade to job flows in a new way. The fitted model captures key features of Colombian firm dynamics and labor market outcomes, as well changes in these features during the past 25 years. Counterfactual experiments imply that integration with global product markets has increased both average income and job turnover in Colombia. In contrast, the experiments find little role for this country's labor market reforms in driving these variables. The results speak more generally to the effects of globalization on labor markets in Latin America and elsewhere.

Keywords: inequality; international trade; Labor market frictions; firm dynamics; size distribution (search for similar items in EconPapers)
JEL-codes: E24 F12 F16 J64 L11 (search for similar items in EconPapers)
Date: 2015-09
New Economics Papers: this item is included in nep-bec, nep-lab, nep-lam, nep-lma, nep-mac and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Firm Dynamics, Job Turnover, and Wage Distributions in an Open Economy (2016)
Working Paper: Firm Dynamics, Job Turnover, and Wage Distributions in an Open Economy (2013)
Working Paper: Firm Dynamics, Job Turnover, and Wage Distributions in an Open Economy (2013)
Working Paper: Firm dynamics, job turnover, and wage distributions in an open economy (2011)
Working Paper: Firm Dynamics, Job Turnover, and Wage Distributions in an Open Economy (2010)
Working Paper: Firm Dynamics, Job Turnover, and Wage Distributions in an Open Economy (2009)
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