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

James Tybout, Nezih Guner and A. Kerem Coşar

No 9732, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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: Firm dynamics; Inequality; International trade; Labor market frictions; Size distribution (search for similar items in EconPapers)
JEL-codes: E24 F12 F16 J64 L11 (search for similar items in EconPapers)
Date: 2013-11
New Economics Papers: this item is included in nep-bec, nep-int, nep-lam and nep-mac
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 (2015)
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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