Trade Policy, Income Risk, and Welfare

This paper develops a framework to study empirically the relationship between trade policy and individual income risk and to evaluate the associated welfare consequences. The analysis proceeds in three steps. First, longitudinal data on workers are used to estimate time-varying individual income ris...

Full description

Bibliographic Details
Main Authors:	Krebs, Tom, Krishna, Pravin, Maloney, William
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Personal Income, Wealth, and Their Distributions D310 Trade Policy International Trade Organizations F130 Wage Level and Structure Wage Differentials J310 Economic Development: Human Resources Human Development Income Distribution Migration O150 International Linkages to Development Role of International Organizations O190
Online Access:	http://hdl.handle.net/10986/4645

id	okr-10986-4645
recordtype	oai_dc
spelling	okr-10986-46452021-04-23T14:02:18Z Trade Policy, Income Risk, and Welfare Krebs, Tom Krishna, Pravin Maloney, William Personal Income, Wealth, and Their Distributions D310 Trade Policy International Trade Organizations F130 Wage Level and Structure Wage Differentials J310 Economic Development: Human Resources Human Development Income Distribution Migration O150 International Linkages to Development Role of International Organizations O190 This paper develops a framework to study empirically the relationship between trade policy and individual income risk and to evaluate the associated welfare consequences. The analysis proceeds in three steps. First, longitudinal data on workers are used to estimate time-varying individual income risk parameters in various manufacturing sectors. Second, the estimated income risk parameters and data on trade barriers are used to analyze the relationship between trade policy and income risk. Finally, a simple dynamic incomplete-market model is used to assess the corresponding welfare costs. In the implementation of this methodology using Mexican data, we find that trade policy changes have a significant short-run effect on income risk. Further, while the tariff level has an insignificant mean effect, it nevertheless changes the degree to which macroeconomic shocks affect income risk. 2012-03-30T07:29:00Z 2012-03-30T07:29:00Z 2010 Journal Article Review of Economics and Statistics 00346535 http://hdl.handle.net/10986/4645 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Mexico
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Personal Income, Wealth, and Their Distributions D310 Trade Policy International Trade Organizations F130 Wage Level and Structure Wage Differentials J310 Economic Development: Human Resources Human Development Income Distribution Migration O150 International Linkages to Development Role of International Organizations O190
spellingShingle	Personal Income, Wealth, and Their Distributions D310 Trade Policy International Trade Organizations F130 Wage Level and Structure Wage Differentials J310 Economic Development: Human Resources Human Development Income Distribution Migration O150 International Linkages to Development Role of International Organizations O190 Krebs, Tom Krishna, Pravin Maloney, William Trade Policy, Income Risk, and Welfare
geographic_facet	Mexico
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	This paper develops a framework to study empirically the relationship between trade policy and individual income risk and to evaluate the associated welfare consequences. The analysis proceeds in three steps. First, longitudinal data on workers are used to estimate time-varying individual income risk parameters in various manufacturing sectors. Second, the estimated income risk parameters and data on trade barriers are used to analyze the relationship between trade policy and income risk. Finally, a simple dynamic incomplete-market model is used to assess the corresponding welfare costs. In the implementation of this methodology using Mexican data, we find that trade policy changes have a significant short-run effect on income risk. Further, while the tariff level has an insignificant mean effect, it nevertheless changes the degree to which macroeconomic shocks affect income risk.
format	Journal Article
author	Krebs, Tom Krishna, Pravin Maloney, William
author_facet	Krebs, Tom Krishna, Pravin Maloney, William
author_sort	Krebs, Tom
title	Trade Policy, Income Risk, and Welfare
title_short	Trade Policy, Income Risk, and Welfare
title_full	Trade Policy, Income Risk, and Welfare
title_fullStr	Trade Policy, Income Risk, and Welfare
title_full_unstemmed	Trade Policy, Income Risk, and Welfare
title_sort	trade policy, income risk, and welfare
publishDate	2012
url	http://hdl.handle.net/10986/4645
_version_	1764392236607340544

Trade Policy, Income Risk, and Welfare

Similar Items