The theoretical frameworks that explain the impact of trade openness on informal employment suggest an ambiguous effect. This has been verified in a few countries, based solely on microeconometric evidence. This study contributes to the literature by specifying a macroeconometric relationship for a panel of 17 Latin American countries.
Nota bibliográficaFunding Information:
I am grateful for the support of the R4D project on Employment funded by the Swiss National Science Foundation and the Swiss Development Cooperation. I thank Omar Alburqueque-Chávez for the excellent research assistance
- Trade openness
- informal employment
- real exchange rate