Many countries have legislation which makes it costly for firms to dismiss or retrench workers. In the case of India, the Industrial Disputes Act, 1947, requires firms that employ 100 or more workers to seek prior permission from government before retrenching workers. This paper builds a...

Estimates of labor mobility costs are needed to assess the responses of employment and wages to trade shocks when factor adjustment is costly. Available methods to estimate those costs rely on panel data, which are seldom available in developing countries. The authors propose a method to...

Estimates of labor mobility costs are needed to assess the responses of employment and wages to a trade shock when factor adjustment is costly. Available methods to estimate those costs rely on panel data, which are seldom available in developing countries. In this paper, we propose a method to...