| Fisher-Schultz Lecture |
Costas Meghir |
Keynote Address |
|
25/08 |
09:00 CEST |
75 mins |
Aula Magna |
|
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2022-08-25 09:00:00
2022-08-25 10:15:00
EEA-ESEM 2022: Fisher-Schultz Lecture. Room: Aula Magna
Based on an homonymous paper authored by Rafael Dix-Carneiro, Penny Goldberg, Costas Meghir and Gabriel Ulyssea
We investigate the impact of trade liberalization in the presence of a large informal sector, which is a feature of many developing countries. It turns out that allowing for an informal sector can substantially change our understanding of how such economies are affected by trade openness. We show that: (a) The productivity gains from trade are understated when the informal sector is omitted; (b) Trade openness results in large welfare gains; and (c) trade openness decreases wage inequality once we allow for the informal sector. Repressing informality does increase productivity, but at the expense of employment and welfare, which introduces complex tradeoffs in the design of labor market policy.
Based on an homonymous paper authored by Rafael Dix-Carneiro, Penny Goldberg, Costas Meghir and Gabriel Ulyssea
We investigate the impact of trade liberalization in the presence of a large informal sector, which is a feature of many developing countries. It turns out that allowing for an informal sector can substantially change our understanding of how such economies are affected by trade openness. We show that: (a) The productivity gains from trade are understated when the informal sector is omitted; (b) Trade openness results in large welfare gains; and (c) trade openness decreases wage inequality once we allow for the informal sector. Repressing informality does increase productivity, but at the expense of employment and welfare, which introduces complex tradeoffs in the design of labor market policy.
EEA-ESEM 2022
congress@eeassoc.org
Europe/Rome
public
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