Arbeitspapier

Import Competition, Formalization, and the Role of Contract Labor

Does higher import competition increase formalization and aggregate productivity? Exploiting plausibly exogenous variation from Chinese imports, we provide empirical causal evidence that higher imports increases the share of formal manufacturing enterprise employment in India. This formal share increase is both due to the rise in formal-enterprise employment driven by the high productivity firms, and a fall in informal-enterprise employment. The labor reallocation is enabled by the formal firms' hiring of contract workers, who do not carry stringent string costs. Overall, Chinese import competition increased formal sector employment share by 3.7 percentage points, and aggregate labor productivity by 2.87%, between 2000-2001 and 2005-2006.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 15760

Klassifikation
Wirtschaft
Empirical Studies of Trade
Trade and Labor Market Interactions
Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
Economic Impacts of Globalization: Labor
Thema
import competition
formal sector employment
informality
contract workers
Chinese imports
reallocation
misallocation

Ereignis
Geistige Schöpfung
(wer)
Chakraborty, Pavel
Singh, Rahul
Soundararajan, Vidhya
Ereignis
Veröffentlichung
(wer)
Institute of Labor Economics (IZA)
(wo)
Bonn
(wann)
2022

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Chakraborty, Pavel
  • Singh, Rahul
  • Soundararajan, Vidhya
  • Institute of Labor Economics (IZA)

Entstanden

  • 2022

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