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 Br...
| Main Authors: | , , , |
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| Format: | Journal Article |
| Language: | English en_US |
| Published: |
Washington, DC: World Bank
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2004/09/17742652/trade-liberalization-industry-wage-structure-evidence-brazil http://hdl.handle.net/10986/17163 |
| Summary: | 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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