eprintid: 10130712
rev_number: 26
eprint_status: archive
userid: 608
dir: disk0/10/13/07/12
datestamp: 2021-08-17 15:45:09
lastmod: 2022-05-20 15:21:33
status_changed: 2021-08-17 15:45:09
type: article
metadata_visibility: show
creators_name: Ponczek, V
creators_name: Ulyssea, G
title: Enforcement of Labour Regulation and the Labour Market Effects of Trade: Evidence from Brazil
ispublished: pub
divisions: UCL
divisions: B03
divisions: C03
divisions: F24
note: Copyright © The Author(s) 2021. Published by Oxford University Press on behalf of Royal Economic Society. This is an Open Access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs licence (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial reproduction and distribution of the work, in any medium, provided the original work is not altered or transformed in any way, and that the work is properly cited.
abstract: How does enforcement of labour regulations shape the labour market effects of trade? We combine local economic shocks generated by the unilateral trade liberalisation in Brazil and enforcement variation across regions to show that regions with stricter enforcement observed: (i) lower informality; (ii) larger losses in overall employment; (iii) greater reductions in the number of formal plants. Regions with weaker enforcement experienced opposite effects. All these effects are concentrated on low-skill workers. Our results indicate that greater flexibility introduced by informality allows both formal firms and low-skill workers to cope better with adverse labour market shocks.
date: 2022-01
publisher: Oxford University Press (OUP)
official_url: https://doi.org/10.1093/ej/ueab052
oa_status: green
full_text_type: pub
language: eng
primo: open
primo_central: open_green
verified: verified_manual
elements_id: 1875063
doi: 10.1093/ej/ueab052
lyricists_name: Ulyssea, Gabriel
lyricists_id: GLDUL10
actors_name: Allington-Smith, Dominic
actors_id: DAALL44
actors_role: owner
full_text_status: public
publication: The Economic Journal
volume: 132
number: 641
pagerange: 361-390
citation:        Ponczek, V;    Ulyssea, G;      (2022)    Enforcement of Labour Regulation and the Labour Market Effects of Trade: Evidence from Brazil.                   The Economic Journal , 132  (641)   pp. 361-390.    10.1093/ej/ueab052 <https://doi.org/10.1093/ej%2Fueab052>.       Green open access   
 
document_url: https://discovery.ucl.ac.uk/id/eprint/10130712/1/ueab052.pdf