TY  - RPRT
        AU  - Cosar, A. Kerem
AU  - Guner, Nezih
AU  - Tybout, James
        TI  - Firm Dynamics, Job Turnover, and Wage Distributions in an Open Economy
        PY  - 2013/Nov/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 7718
        UR  - https://www.iza.org/publications/dp7718
        AB  - This paper explores the combined effects of reductions in trade frictions, tariffs, and firing costs on firm dynamics, job turnover, and wage distributions. It uses establishment-level data from Colombia to estimate an open economy dynamic model that links trade to job flows in a new way. The fitted model captures key features of Colombian firm dynamics and labor market outcomes, as well changes in these features during the past 25 years. Counterfactual experiments imply that integration with global product markets has increased both average income and job turnover in Colombia. In contrast, the experiments find little role for this country's labor market reforms in driving these variables. The results speak more generally to the effects of globalization on labor markets in Latin America and elsewhere.
        KW  - size distribution
KW  - firm dynamics
KW  - international trade
KW  - labor market frictions
KW  - inequality
        ER  -