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This paper estimates the impacts of world agricultural trade liberalization on wages, employment and unemployment in Argentina, a country with positive net agricultural exports and high unemployment rates. In the estimation of these wage and unemployment responses, the empirical model allows for individual labor supply responses and for adjustment costs in labor demand. The findings show that a 10 percent increase in the price of agricultural exports would cause an increase in the Argentine employment probability of 1.36 percentage points, matched by a decline in the unemployment probability of 0.75 percentage points and an increase in labor market participation of 0.61 percentage points. Further, the unemployment rate would decline by 1.23 percentage points (by almost 10 percent). Expected wages would increase by 10.3 percent, an effect that is mostly driven by higher employment probabilities. This indicates that the bulk of the impacts of trade reforms originates in household responses in the presence of adjustment costs, and that failure to account for them may lead to significant biases in the welfare evaluation of trade policy.

Adjustment costs --- Economic Theory and Research --- Employment probability --- Expected wages --- High unemployment --- High unemployment rates --- Labor demand --- Labor market --- Labor Markets --- Labor Policies --- Labor supply --- Macroeconomics and Economic Growth --- Markets and Market Access --- Social Protections and Labor --- Unemployment --- Unemployment rate

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This paper investigates the occupational mobility and job quality of young people in Indonesia and relates this to the concept of "scarring." The concept of labor market scarring in this paper is the occurrence of low or zero returns to certain types of work (for example, self-employment). Scarring is expected to occur whenever an individual spends periods working in occupations in which their human capital is either stagnant or deteriorating. Fixed effects estimations using panel data from the Indonesian Family Life Survey reveal that a period in self-employment is associated with negative returns for youth (about 3 to 4 percent per year penalty), but not for older adults. In addition, there are clear patterns of persistence in self-employment over time with few individuals progressing from petty self-employment to businesses with permanent workers.

Adult males --- Aggregate unemployment --- Casual worker --- College graduate --- Contingent workers --- Displaced workers --- Earning --- Earnings losses --- Educational attainment --- Employee --- Employment outcomes --- Employment probability --- Employment prospects --- Employment status --- Expected wages --- Family labor --- Full time job --- Health insurance --- Household characteristics --- Human capital --- Human resource --- Informal employment --- Informal sector --- Job --- Job creation --- Job match --- Job search --- Job security --- Job separation --- Job status --- Job training --- Labor --- Labor contract --- Labor economics --- Labor force --- Labor management & relations --- Labor market --- Labor market characteristics --- Labor market experience --- Labor market outcomes --- Labor market segmentation --- Labor markets --- Labor policies --- Labor productivity --- Labor relations --- Labor standards --- Labour --- Labour market --- Long term wage --- Occupational mobility --- Older workers --- Permanent employment --- Permanent worker --- Permanent workers --- Private sector --- Private sector workers --- Public sector employment --- Safety net --- Salaried employment --- Self-employed --- Self-employment --- Social protections and labor --- Temporary work --- Temporary workers --- Unemployed --- Unemployed individual --- Unemployed youth --- Unemployment --- Unemployment rate --- Wage differentials --- Wage effects --- Wage employment --- Wage growth --- Wage impact --- Wage rates --- Wage sector --- Wage subsidies --- Work experience --- Worker --- Workers --- Working conditions --- Youth employment --- Youth unemployment