The magnitude of existing research on the effects of trade reform is impressive. Yet economists have not reached a clear consensus on a number of important questions such as the labor market impact of trade reform, the linkages between trade and foreign direct investment, and the relationship...

Events of the past two years are a reminder that crises are a recurring phenomenon with deep and often protracted impacts on labor markets. This paper examines the challenges inherent in crafting policy responses, with particular attention to developing countries. It focuses on the potential...

The authors evaluated how Mexico's Labor Retraining Program (PROBECAT) affected unemployment and displaced workers. As part of the World Bank supported Manpower Training project, PROBECAT has provided short-term vocational training to more than 250,000 unemployed people. Their evaluation was...

The authors review recent developments in wages, employment, and unemployment in Poland and discuss some of the main risks Poland faces in sustaining its stabilization effort. They find that: unemployment has increased dramatically with stabilization, but this increase cannot be said to reflect...

In 1985, after decades of an import-substitution industrial strategy, Mexico initiated a radical liberalization of its external sector. Between 1985 and 1988, import licensing requirements were scaled back to a quarter of earlier levels, reference prices were removed, and tariff rates on most...

The restructuring of Mexico's economy has had surprisingly little effect on Mexican unemployment, which is low even in the worst years. The authors ask: Is the official definition of unemployment adequate? Is unemployment properly measured? And who bears its burden? Is the welfare cost of...