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

A. Kerem Co?ar, Nezih Guner and James Tybout

American Economic Review, 2016, vol. 106, issue 3, 625-63

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 and wages. Counterfactual experiments imply that Colombia's integration with global product markets increased its national income at the expense of higher unemployment, greater wage inequality, and increased firm-level volatility. In contrast, contemporaneous labor market reforms dampened the increase in unemployment and aggregate job turnover. The results speak more generally to the effects of globalization on labor markets. (JEL F13, F16, F66, J31, J63, O15, O19)

JEL-codes: F13 F16 F66 J31 J63 O15 O19 (search for similar items in EconPapers)
Date: 2016
Note: DOI: 10.1257/aer.20110457
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Citations: View citations in EconPapers (99)

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Related works:
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 (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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