Trade liberalization and informality in Argentina: exploring the adjustment mechanisms

Autores
Cruces, Guillermo Antonio; Porto, Guido Gustavo; Viollaz, Mariana
Año de publicación
2018
Idioma
inglés
Tipo de recurso
artículo
Estado
versión publicada
Descripción
This paper studies the link between trade reforms and labor informality in Argentina using a long time series spanning the 1980–2001 period. We explore cross-section mechanisms, that operate at the industry level, and time-series mechanisms, that operate at a general equilibrium level. We argue that firms can substitute formal with informal workers to smooth a negative trade shock. In this setting, industries exposed to larger tariffs cuts could experience increases in informality. In general equilibrium, there can be additional aggregate impacts in both manufacturing and non-traded sectors through workers reallocation among sectors, wage adjustments, and firm entry and exit. Using the cross-section variation of the data and an instrumental variable strategy we explore empirically the cross-section mechanisms. We find that reductions in industry tariffs increase labor informality, and the effect is differentially stronger in industries with a larger share of small-size firms. Using the time-series variation of the data, we are able to identify some of the general equilibrium effects. We find that the fall in the average national tariff decreased aggregate informality in the manufacturing sector but increased it in the non-traded sector.
Fil: Cruces, Guillermo Antonio. Universidad Nacional de La Plata. Facultad de Ciencias Económicas. Departamento de Ciencias Económicas. Centro de Estudios Distributivos Laborales y Sociales; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - La Plata; Argentina
Fil: Porto, Guido Gustavo. Universidad Nacional de La Plata. Facultad de Ciencias Económicas; Argentina
Fil: Viollaz, Mariana. Universidad Nacional de La Plata. Facultad de Ciencias Económicas. Departamento de Ciencias Económicas. Centro de Estudios Distributivos Laborales y Sociales; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - La Plata; Argentina
Materia
ARGENTINA
CROSS-SECTION MECHANISMS
LABOR INFORMALITY
TIME-SERIES MECHANISMS
TRADE LIBERALIZATION
Nivel de accesibilidad
acceso abierto
Condiciones de uso
https://creativecommons.org/licenses/by/2.5/ar/
Repositorio
CONICET Digital (CONICET)
Institución
Consejo Nacional de Investigaciones Científicas y Técnicas
OAI Identificador
oai:ri.conicet.gov.ar:11336/134060
Acceder
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repository_id_str 3498
network_name_str CONICET Digital (CONICET)
spelling Trade liberalization and informality in Argentina: exploring the adjustment mechanismsCruces, Guillermo AntonioPorto, Guido GustavoViollaz, MarianaARGENTINACROSS-SECTION MECHANISMSLABOR INFORMALITYTIME-SERIES MECHANISMSTRADE LIBERALIZATIONhttps://purl.org/becyt/ford/5.2https://purl.org/becyt/ford/5This paper studies the link between trade reforms and labor informality in Argentina using a long time series spanning the 1980–2001 period. We explore cross-section mechanisms, that operate at the industry level, and time-series mechanisms, that operate at a general equilibrium level. We argue that firms can substitute formal with informal workers to smooth a negative trade shock. In this setting, industries exposed to larger tariffs cuts could experience increases in informality. In general equilibrium, there can be additional aggregate impacts in both manufacturing and non-traded sectors through workers reallocation among sectors, wage adjustments, and firm entry and exit. Using the cross-section variation of the data and an instrumental variable strategy we explore empirically the cross-section mechanisms. We find that reductions in industry tariffs increase labor informality, and the effect is differentially stronger in industries with a larger share of small-size firms. Using the time-series variation of the data, we are able to identify some of the general equilibrium effects. We find that the fall in the average national tariff decreased aggregate informality in the manufacturing sector but increased it in the non-traded sector.Fil: Cruces, Guillermo Antonio. Universidad Nacional de La Plata. Facultad de Ciencias Económicas. Departamento de Ciencias Económicas. Centro de Estudios Distributivos Laborales y Sociales; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - La Plata; ArgentinaFil: Porto, Guido Gustavo. Universidad Nacional de La Plata. Facultad de Ciencias Económicas; ArgentinaFil: Viollaz, Mariana. Universidad Nacional de La Plata. Facultad de Ciencias Económicas. Departamento de Ciencias Económicas. Centro de Estudios Distributivos Laborales y Sociales; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - La Plata; ArgentinaSpringer2018-12info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionhttp://purl.org/coar/resource_type/c_6501info:ar-repo/semantics/articuloapplication/pdfapplication/pdfhttp://hdl.handle.net/11336/134060Cruces, Guillermo Antonio; Porto, Guido Gustavo; Viollaz, Mariana; Trade liberalization and informality in Argentina: exploring the adjustment mechanisms; Springer; Latin American Economic Review; 27; 1; 12-2018; 1-292196-436XCONICET DigitalCONICETenginfo:eu-repo/semantics/altIdentifier/doi/10.1186/s40503-018-0061-1info:eu-repo/semantics/altIdentifier/url/https://latinaer.springeropen.com/articles/10.1186/s40503-018-0061-1info:eu-repo/semantics/openAccesshttps://creativecommons.org/licenses/by/2.5/ar/reponame:CONICET Digital (CONICET)instname:Consejo Nacional de Investigaciones Científicas y Técnicas2025-09-29T10:18:31Zoai:ri.conicet.gov.ar:11336/134060instacron:CONICETInstitucionalhttp://ri.conicet.gov.ar/Organismo científico-tecnológicoNo correspondehttp://ri.conicet.gov.ar/oai/requestdasensio@conicet.gov.ar; lcarlino@conicet.gov.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:34982025-09-29 10:18:31.459CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicasfalse
dc.title.none.fl_str_mv Trade liberalization and informality in Argentina: exploring the adjustment mechanisms
title Trade liberalization and informality in Argentina: exploring the adjustment mechanisms
spellingShingle Trade liberalization and informality in Argentina: exploring the adjustment mechanisms
Cruces, Guillermo Antonio
ARGENTINA
CROSS-SECTION MECHANISMS
LABOR INFORMALITY
TIME-SERIES MECHANISMS
TRADE LIBERALIZATION
title_short Trade liberalization and informality in Argentina: exploring the adjustment mechanisms
title_full Trade liberalization and informality in Argentina: exploring the adjustment mechanisms
title_fullStr Trade liberalization and informality in Argentina: exploring the adjustment mechanisms
title_full_unstemmed Trade liberalization and informality in Argentina: exploring the adjustment mechanisms
title_sort Trade liberalization and informality in Argentina: exploring the adjustment mechanisms
dc.creator.none.fl_str_mv Cruces, Guillermo Antonio
Porto, Guido Gustavo
Viollaz, Mariana
author Cruces, Guillermo Antonio
author_facet Cruces, Guillermo Antonio
Porto, Guido Gustavo
Viollaz, Mariana
author_role author
author2 Porto, Guido Gustavo
Viollaz, Mariana
author2_role author
author
dc.subject.none.fl_str_mv ARGENTINA
CROSS-SECTION MECHANISMS
LABOR INFORMALITY
TIME-SERIES MECHANISMS
TRADE LIBERALIZATION
topic ARGENTINA
CROSS-SECTION MECHANISMS
LABOR INFORMALITY
TIME-SERIES MECHANISMS
TRADE LIBERALIZATION
purl_subject.fl_str_mv https://purl.org/becyt/ford/5.2
https://purl.org/becyt/ford/5
dc.description.none.fl_txt_mv This paper studies the link between trade reforms and labor informality in Argentina using a long time series spanning the 1980–2001 period. We explore cross-section mechanisms, that operate at the industry level, and time-series mechanisms, that operate at a general equilibrium level. We argue that firms can substitute formal with informal workers to smooth a negative trade shock. In this setting, industries exposed to larger tariffs cuts could experience increases in informality. In general equilibrium, there can be additional aggregate impacts in both manufacturing and non-traded sectors through workers reallocation among sectors, wage adjustments, and firm entry and exit. Using the cross-section variation of the data and an instrumental variable strategy we explore empirically the cross-section mechanisms. We find that reductions in industry tariffs increase labor informality, and the effect is differentially stronger in industries with a larger share of small-size firms. Using the time-series variation of the data, we are able to identify some of the general equilibrium effects. We find that the fall in the average national tariff decreased aggregate informality in the manufacturing sector but increased it in the non-traded sector.
Fil: Cruces, Guillermo Antonio. Universidad Nacional de La Plata. Facultad de Ciencias Económicas. Departamento de Ciencias Económicas. Centro de Estudios Distributivos Laborales y Sociales; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - La Plata; Argentina
Fil: Porto, Guido Gustavo. Universidad Nacional de La Plata. Facultad de Ciencias Económicas; Argentina
Fil: Viollaz, Mariana. Universidad Nacional de La Plata. Facultad de Ciencias Económicas. Departamento de Ciencias Económicas. Centro de Estudios Distributivos Laborales y Sociales; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - La Plata; Argentina
description This paper studies the link between trade reforms and labor informality in Argentina using a long time series spanning the 1980–2001 period. We explore cross-section mechanisms, that operate at the industry level, and time-series mechanisms, that operate at a general equilibrium level. We argue that firms can substitute formal with informal workers to smooth a negative trade shock. In this setting, industries exposed to larger tariffs cuts could experience increases in informality. In general equilibrium, there can be additional aggregate impacts in both manufacturing and non-traded sectors through workers reallocation among sectors, wage adjustments, and firm entry and exit. Using the cross-section variation of the data and an instrumental variable strategy we explore empirically the cross-section mechanisms. We find that reductions in industry tariffs increase labor informality, and the effect is differentially stronger in industries with a larger share of small-size firms. Using the time-series variation of the data, we are able to identify some of the general equilibrium effects. We find that the fall in the average national tariff decreased aggregate informality in the manufacturing sector but increased it in the non-traded sector.
publishDate 2018
dc.date.none.fl_str_mv 2018-12
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
http://purl.org/coar/resource_type/c_6501
info:ar-repo/semantics/articulo
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv http://hdl.handle.net/11336/134060
Cruces, Guillermo Antonio; Porto, Guido Gustavo; Viollaz, Mariana; Trade liberalization and informality in Argentina: exploring the adjustment mechanisms; Springer; Latin American Economic Review; 27; 1; 12-2018; 1-29
2196-436X
CONICET Digital
CONICET
url http://hdl.handle.net/11336/134060
identifier_str_mv Cruces, Guillermo Antonio; Porto, Guido Gustavo; Viollaz, Mariana; Trade liberalization and informality in Argentina: exploring the adjustment mechanisms; Springer; Latin American Economic Review; 27; 1; 12-2018; 1-29
2196-436X
CONICET Digital
CONICET
dc.language.none.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv info:eu-repo/semantics/altIdentifier/doi/10.1186/s40503-018-0061-1
info:eu-repo/semantics/altIdentifier/url/https://latinaer.springeropen.com/articles/10.1186/s40503-018-0061-1
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
https://creativecommons.org/licenses/by/2.5/ar/
eu_rights_str_mv openAccess
rights_invalid_str_mv https://creativecommons.org/licenses/by/2.5/ar/
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv Springer
publisher.none.fl_str_mv Springer
dc.source.none.fl_str_mv reponame:CONICET Digital (CONICET)
instname:Consejo Nacional de Investigaciones Científicas y Técnicas
reponame_str CONICET Digital (CONICET)
collection CONICET Digital (CONICET)
instname_str Consejo Nacional de Investigaciones Científicas y Técnicas
repository.name.fl_str_mv CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicas
repository.mail.fl_str_mv dasensio@conicet.gov.ar; lcarlino@conicet.gov.ar
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score 13.070432

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