Trade Liberalization, Employment Flows, and Wage Inequality in Brazil

Trade Liberalization, Employment Flows, and Wage Inequality in Brazil

Using nationally representative, economywide data, this paper investigates the relative importance of trade-mandated effects on industry wage premia; industry and economywide skill premia; and employment flows in accounting for changes in the wage...

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Bibliographic Details
Main Authors: Ferreira, Francisco H.G., Leite, Phillippe G., Wai-Poi, Matthew
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
AGGREGATE TRADE
AGRICULTURE
BENCHMARK
COMPETITIVE CONDITIONS
COMPETITIVE MARKETS
COMPETITIVE PRESSURES
CONSUMERS
COUNTERFACTUAL WAGE DISTRIBUTION
CUSTOMS
DEVELOPING REGIONS
DOMESTIC PRICES
DOMESTIC PRODUCTION
EARNINGS REGRESSIONS
EMPLOYMENT EFFECTS
EMPLOYMENT LEVELS
EMPLOYMENT PROBABILITIES
EMPLOYMENT SHARE
EXCHANGE RATE
EXCHANGE RATES
EXPORT SHARES
EXPORTERS
FACTORS OF PRODUCTION
GROUP WORKERS
GROWTH RATE
HOUSEHOLD INCOME
HOUSEHOLD SURVEY
IMPACT OF TRADE
IMPACT OF TRADE LIBERALIZATION
IMPERFECT COMPETITION
IMPORT COMPETITION
IMPORT PENETRATION
IMPORTS
INCOME LEVELS
INDUSTRY CHARACTERISTICS
INDUSTRY WAGE
INEQUALITY MEASURES
INFORMAL EMPLOYMENT
INFORMAL SECTOR
INTERNATIONAL TRADING SYSTEM
LABOR FORCE
LABOR MARKET
LABOR MARKETS
LABOR REALLOCATION
LATIN AMERICAN
MARGINAL EFFECTS
NATURAL RESOURCES
NON-TARIFF BARRIERS
OCCUPATION
OCCUPATIONS
OPENNESS
OUTSOURCING
PER CAPITA INCOMES
POLICY MAKERS
POLICY RESEARCH
PREVIOUS STUDIES
PRICES FALL
PRODUCT MARKETS
PRODUCT PRICES
PRODUCTION WORKERS
PROTECTED INDUSTRIES
PUBLIC SERVICE
RATES OF PROTECTION
RURAL WORKERS
SKILL PREMIUM
TARIFF BARRIERS
TARIFF RATES
TARIFF REVENUES
TOTAL EMPLOYMENT
TOTAL FACTOR PRODUCTIVITY
TOTAL FACTOR PRODUCTIVITY GROWTH
TRADE DATA
TRADE FLOWS
TRADE LIBERALIZATION
TRADE LIBERALIZATIONS
TRADE MODELS
TRADE OPENNESS
TRADE POLICY
TRADE REFORM
TRADE REFORMS
TRADE VARIABLES
UNEMPLOYMENT
UNSKILLED LABOR
UNSKILLED WORKERS
WAGE DISTRIBUTION
WAGE GAP
WAGE GROWTH
WAGE INEQUALITY
WAGE LEVELS
WAGE PREMIUM
WAGES
WORKER
WORLD TRADE
Online Access:http://documents.worldbank.org/curated/en/2007/01/7309378/trade-liberalization-employment-flows-wage-inequality-brazil
http://hdl.handle.net/10986/6880
Description
Summary:Using nationally representative, economywide data, this paper investigates the relative importance of trade-mandated effects on industry wage premia; industry and economywide skill premia; and employment flows in accounting for changes in the wage distribution in Brazil during the 1988-95 trade liberalization. Unlike in other Latin American countries, trade liberalization appears to have made a significant contribution toward a reduction in wage inequality. These effects have not occurred through changes in industry-specific (wage or skill) premia. Instead, they appear to have been channeled through substantial employment flows across sectors and formality categories. Changes in the economywide skill premium are also important.

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