Trade Liberalization and Industry Wage Structure : Evidence from Brazil

Industry affiliation provides an important channel through which trade liberalization can affect worker earnings and wage inequality between skilled and unskilled workers. This empirical study of the impact of the 1988-94 trade liberalization in Brazil on the industry wage structure suggests that although industry affiliation is an important component of worker earnings, the structure of industry wage premiums is relatively stable over time. There is no statistical association between changes in industry wage premiums and changes in trade policy or between industry-specific skill premiums to university graduates and trade policy. Thus trade liberalization in Brazil did not significantly contribute to increased wage inequality between skilled and unskilled workers through changes in industry wage premiums. The difference between these results and those obtained for other countries (such as Colombia and Mexico) provides fruitful ground for studying the conditions under which trade reforms do not have an adverse effect on industry wage differentials

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Bibliographic Details
Main Authors: Pavcnik, Nina, Blom, Andreas, Goldberg, Pinelopi, Schady, Norbert
Format: Journal Article biblioteca
Language:English
en_US
Published: Washington, DC: World Bank 2004-09
Subjects:ABSOLUTE VALUE, ADVERSE EFFECT, AFFECTED WORKER, AVERAGE TARIFF, AVERAGE TARIFFS, AVERAGE WAGE, AVERAGE WAGE PREMIUM, BARGAINING POWER, BENEFITS OF TRADE, BILATERAL TRADE, CHANGES IN TRADE, COMPETITIVENESS, CURRENT ACCOUNT, CURRENT ACCOUNT DEFICIT, DEVELOPING COUNTRIES, DEVELOPMENT ECONOMICS, DOMESTIC CONSUMPTION, DOMESTIC INDUSTRIES, ECONOMIC RESEARCH, EMPLOYMENT, ESTIMATED WAGE PREMIUMS, EXCHANGE RATE FLUCTUATION, EXCHANGE RATE FLUCTUATIONS, EXCHANGE RATES, EXPORTS, FACTORS OF PRODUCTION, FOREIGN COMPETITION, FOREIGN GOODS, FORMAL ANALYSIS, FREE TRADE, FUTURE RESEARCH, GDP, GLOBALIZATION, GNP, HIGH LEVELS, HIGH TARIFFS, HOUSEHOLD SURVEYS, HUMAN CAPITAL, IMPACT OF TRADE, IMPACT OF TRADE LIBERALIZATION, IMPACT OF TRADE REFORMS, IMPERFECT COMPETITION, IMPORT COMPETITION, IMPORT LICENSES, IMPORT PENETRATION, IMPORT SUBSTITUTION, IMPORTS, INDUSTRIALIZATION, INDUSTRY CHARACTERISTICS, INDUSTRY WAGE, INDUSTRY WAGE DIFFERENTIALS, INDUSTRY WAGES, INFORMAL SECTOR, INFORMAL SECTOR WORKERS, INFORMAL WORKERS, INTERNATIONAL COMPETITION, INTERNATIONAL ECONOMICS, JOB SECURITY, LABOR ECONOMICS, LABOR FORCE, LABOR MARKET, LABOR MARKET INSTITUTIONS, LABOR MARKET POLICIES, LABOR MARKET REGULATION, LABOR MARKET REGULATIONS, LABOR MARKETS, LABOR MOBILITY, LABOR RELATIONS, LABOR SUPPLY, LIVING STANDARDS, LOBBYING, MACROECONOMIC SHOCKS, MANUFACTURING INDUSTRIES, MARGINAL PRODUCT, MARKET SHARE, MINIMUM WAGE, MINIMUM WAGES, MOST FAVORED NATION, OFFICE WORKERS, OPENNESS, POLITICAL ECONOMY, PREVIOUS STUDIES, PREVIOUS WORK, PRICE INDEX, PRIMARY EDUCATION, PRODUCT PRICES, PRODUCTION WORKERS, PRODUCTIVITY, PRODUCTIVITY GAP, PRODUCTIVITY GROWTH, PRODUCTIVITY IMPROVEMENTS, PROFIT MARGINS, SKILL PREMIUM, SKILL PREMIUMS, TARIFF CHANGES, TARIFF DATA, TARIFF DISPERSION, TARIFF FORMATION, TARIFF LEVELS, TARIFF RATES, TARIFF REDUCTIONS, TEXTILE INDUSTRY, TOTAL OUTPUT, TRADE DATA, TRADE FLOWS, TRADE LIBERALIZATION, TRADE LIBERALIZATION INCREASES, TRADE LIBERALIZATIONS, TRADE POLICY, TRADE PROTECTION, TRADE REFORM, TRADE REFORMS, TRADE REGIMES, TRADE VOLUMES, TRANSPORT COSTS, UNILATERAL TRADE, UNILATERAL TRADE LIBERALIZATION, UNION MEMBERSHIP, UNION WAGE PREMIUM, UNSKILLED WORKERS, VALUE ADDED, WAGE DISPERSION, WAGE DISTRIBUTION, WAGE EFFECTS, WAGE INEQUALITY, WAGE PREMIUM, WAGE PREMIUMS, WAGE STRUCTURE, WORKER, WORKERS EXPERIENCE,
Online Access:http://documents.worldbank.org/curated/en/2004/09/17742652/trade-liberalization-industry-wage-structure-evidence-brazil
https://hdl.handle.net/10986/17163
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