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Import Competition, Formalization, and the Role of Contract Labor

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Import Competition, Formalization, and the Role of Contract Labor. / Chakraborty, Pavel; Singh, Rahul; Soundararajan, Vidhya.
In: World Bank Economic Review, Vol. 38, No. 4, 26.10.2024, p. 741-771.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Harvard

Chakraborty, P, Singh, R & Soundararajan, V 2024, 'Import Competition, Formalization, and the Role of Contract Labor', World Bank Economic Review, vol. 38, no. 4, pp. 741-771. https://doi.org/10.1093/wber/lhae007

APA

Chakraborty, P., Singh, R., & Soundararajan, V. (2024). Import Competition, Formalization, and the Role of Contract Labor. World Bank Economic Review, 38(4), 741-771. https://doi.org/10.1093/wber/lhae007

Vancouver

Chakraborty P, Singh R, Soundararajan V. Import Competition, Formalization, and the Role of Contract Labor. World Bank Economic Review. 2024 Oct 26;38(4):741-771. Epub 2024 Feb 28. doi: 10.1093/wber/lhae007

Author

Chakraborty, Pavel ; Singh, Rahul ; Soundararajan, Vidhya. / Import Competition, Formalization, and the Role of Contract Labor. In: World Bank Economic Review. 2024 ; Vol. 38, No. 4. pp. 741-771.

Bibtex

@article{1fff90366e9643c5a2eae6ae7d1c7abb,
title = "Import Competition, Formalization, and the Role of Contract Labor",
abstract = "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 due to both the rise in formal-enterprise employment driven by high-productivity firms, and a fall in informal-enterprise employment. The labor reallocation is enabled by the formal firms{\textquoteright} hiring of contract workers, who do not carry stringent firing costs. Overall, Chinese import competition increased formal-sector employment share by 3.7 percentage points, and aggregate labor productivity by 2.87 percent, between the years 2000–2001 and 2005–2006.",
author = "Pavel Chakraborty and Rahul Singh and Vidhya Soundararajan",
year = "2024",
month = oct,
day = "26",
doi = "10.1093/wber/lhae007",
language = "English",
volume = "38",
pages = "741--771",
journal = "World Bank Economic Review",
issn = "0258-6770",
publisher = "Oxford University Press",
number = "4",

}

RIS

TY - JOUR

T1 - Import Competition, Formalization, and the Role of Contract Labor

AU - Chakraborty, Pavel

AU - Singh, Rahul

AU - Soundararajan, Vidhya

PY - 2024/10/26

Y1 - 2024/10/26

N2 - 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 due to both the rise in formal-enterprise employment driven by 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 firing costs. Overall, Chinese import competition increased formal-sector employment share by 3.7 percentage points, and aggregate labor productivity by 2.87 percent, between the years 2000–2001 and 2005–2006.

AB - 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 due to both the rise in formal-enterprise employment driven by 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 firing costs. Overall, Chinese import competition increased formal-sector employment share by 3.7 percentage points, and aggregate labor productivity by 2.87 percent, between the years 2000–2001 and 2005–2006.

U2 - 10.1093/wber/lhae007

DO - 10.1093/wber/lhae007

M3 - Journal article

VL - 38

SP - 741

EP - 771

JO - World Bank Economic Review

JF - World Bank Economic Review

SN - 0258-6770

IS - 4

ER -