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The effect of foreign competition on family and network labour allocation

Margaryta Klymak

No wp-2019-39, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper examines whether foreign competition affects the reallocation of unpaid and family workers from household businesses to working outside of the family firm. Using a rich panel dataset of Vietnamese manufacturing enterprises that went through trade liberalization, I find that import competition leads to the switching of family and unpaid employees from working at the household firm to working externally. This response to heightening foreign competition is also greater for less financially stable firms, and for the households largely reliant on the income from the household firm.

Keywords: Family workers; Foreign competition; Household business; Unpaid labour (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-bec, nep-int and nep-sea
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