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Abstract

This dissertation contributes further evidence to the range of studies which have evaluated the effects of trade on informality at both the firm and the worker level. It benefits from the availability of a rich household dataset from India, whereby individuals are tracked over eight years, a firm-level dataset from Viet Nam whereby firms and workers are tracked biennially, and a SAM from Mozambique modified to fit a recursive dynamic CGE model. The first study focuses on India and investigates the effects of international trade on individuals, with a particular focus on the distributional effects of trade. The second study focuses on Viet Nam and evaluates the effects of trade at the firm level on informality at both the extensive and intensive margin. Finally, the third study focuses on Mozambique and estimates the effects of tariff cuts on workers who are likely to be highly informal in an economy where data availability is sparse. Collectively, these papers highlight the nuanced effects of international trade on informality and the context-specific policies needed to address the broader labour market impacts on trade.

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