Effects of tariffs and real exchange rates on job reallocation: evidence from Latin America
Maurice Kugler (),
Alejandro Micco () and
Journal of Economic Policy Reform, 2004, vol. 7, issue 4, 191-208
Openness to international competition can lead to enhanced resource allocation in the end. While factor reallocation is essential if net benefits are to be derived from trade liberalization, the process generates costs both for transitioning workers and for employers undergoing personnel turnover. Net welfare gains depend on adjustment costs. Understanding of these issues has been hampered by data limitations. In this paper, we overcome some of these limitations by using new, harmonized measures on job creation and destruction for a number of countries in Latin America. We use these new series to investigate the impact of the removal of protectionism on net employment and gross job reallocation in Latin America. We find a robust pattern showing that reductions in tariffs and exchange rate appreciations increase the pace of job reallocation within sectors. We also find, however, some evidence of declining net employment growth as trade exposure increases. For example, we find some evidence that in the wake of tariff reductions, there is lower net employment growth.
Keywords: Tariff reduction; Currency appreciation; Trade exposure; Intra-industry reallocation; JEL Codes: F160; F310; O240 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (51) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
Working Paper: Effects of tariffs and real exchange rates on job reallocation: evidence from Latin America (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:taf:jpolrf:v:7:y:2004:i:4:p:191-208
Ordering information: This journal article can be ordered from
Access Statistics for this article
Journal of Economic Policy Reform is currently edited by Dr Judith Clifton
More articles in Journal of Economic Policy Reform from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().