Does Tariff Liberalization Increase Wage Inequality? Some Empirical Evidence

The objective of the paper is to answer an often asked question: If tariff rates are reduced, what will happen to wage inequality? The authors consider two types of wage inequality: between occupations (skills premium) and between industries. They use two large databases of wage inequality that have...

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Main Authors:	Milanovic, Branko, Squire, Lyn
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	AVERAGE INCOME AVERAGE INCOMES AVERAGE TARIFF CAPITAL ACCOUNT CAPITAL FLOWS CHANGES IN TRADE COMPARATIVE ADVANTAGE CROSS-COUNTRY REGRESSION DATA COLLECTION DATA SET DECLINING INEQUALITY DEMOGRAPHICS DEPENDENT VARIABLE DEVELOPING COUNTRIES EARNINGS INEQUALITY ECONOMIC RESEARCH EMPIRICAL ANALYSIS EMPIRICAL ESTIMATION EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPIRICAL MODEL EMPIRICAL STUDIES EMPIRICAL WORK EQUILIBRIUM EXCESS PROFITS EXPLANATORY VARIABLE EXPLANATORY VARIABLES EXPORT ORIENTATION EXPORT VOLUMES EXPORTS EXTERNALITIES FAMILY BENEFITS FINANCIAL LIBERALIZATION FOREIGN COMPETITION FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENTS FOREIGN INVESTORS GDP GINI INDEX GLOBAL ECONOMY IMPACT OF TRADE INCOME DISTRIBUTION INCOME LEVEL INCREASE WAGE INEQUALITY INCREASED INEQUALITY INCREASING FUNCTION INCREASING WAGE INCREASING WAGE INEQUALITY INEQUALITY MEASURE INEQUALITY MEASURES INVESTMENT FLOWS LABOR DEMAND LABOR FORCE LABOR MARKET LABOR MARKETS LIBERALIZATION LIBERALIZATION OF TRADE LOW INCOME MEAN INCOMES MEDIAN INCOME NATURAL RESOURCES NEGATIVE IMPACT OBSERVED CHANGE OIL OPENNESS POLICY CHANGE POLICY CHANGES POLICY INDICATORS POLICY REFORMS POLICY RESEARCH POLICY VARIABLES POLITICAL ECONOMY POLITICAL ECONOMY CONSIDERATIONS POOR COUNTRIES POOR COUNTRY POSITIVE RELATIONSHIP PRODUCTIVITY REAL WAGES RELATIVE DEMAND RELATIVE WAGES RISING INEQUALITY SKILL LEVEL SKILL PREMIUM SKILLED LABOR SKILLED SECTOR SKILLED WAGES SKILLED WORKERS SOCIAL TRANSFERS TARIFF LEVELS TARIFF RATE TARIFF RATES TARIFF REDUCTION TAX REFORM TECHNOLOGICAL CHANGE TECHNOLOGICAL PROGRESS TRADE TRADE EFFECT TRADE LIBERALIZATION TRADE LIBERALIZATIONS TRADE OPENNESS TRADE POLICIES TRADE POLICY TRADE PROTECTION TRADE REFORM TRADE REFORMS TRADE REGIME TRADE REGIMES TRADE VOLUMES UNSKILLED LABOR UNSKILLED WORKERS VOLUME OF TRADE WAGE CHANGES WAGE DIFFERENTIALS WAGE DISTRIBUTION WAGE GAP WAGE RATES
Online Access:	http://documents.worldbank.org/curated/en/2005/04/5758504/tariff-liberalization-increase-wage-inequality-some-empirical-evidence http://hdl.handle.net/10986/8980

id	okr-10986-8980
recordtype	oai_dc
spelling	okr-10986-89802021-04-23T14:02:42Z Does Tariff Liberalization Increase Wage Inequality? Some Empirical Evidence Milanovic, Branko Squire, Lyn AVERAGE INCOME AVERAGE INCOMES AVERAGE TARIFF CAPITAL ACCOUNT CAPITAL FLOWS CHANGES IN TRADE COMPARATIVE ADVANTAGE CROSS-COUNTRY REGRESSION DATA COLLECTION DATA SET DECLINING INEQUALITY DEMOGRAPHICS DEPENDENT VARIABLE DEVELOPING COUNTRIES EARNINGS INEQUALITY ECONOMIC RESEARCH EMPIRICAL ANALYSIS EMPIRICAL ESTIMATION EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPIRICAL MODEL EMPIRICAL STUDIES EMPIRICAL WORK EQUILIBRIUM EXCESS PROFITS EXPLANATORY VARIABLE EXPLANATORY VARIABLES EXPORT ORIENTATION EXPORT VOLUMES EXPORTS EXTERNALITIES FAMILY BENEFITS FINANCIAL LIBERALIZATION FOREIGN COMPETITION FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENTS FOREIGN INVESTORS GDP GINI INDEX GLOBAL ECONOMY IMPACT OF TRADE INCOME DISTRIBUTION INCOME LEVEL INCREASE WAGE INEQUALITY INCREASED INEQUALITY INCREASING FUNCTION INCREASING WAGE INCREASING WAGE INEQUALITY INEQUALITY MEASURE INEQUALITY MEASURES INVESTMENT FLOWS LABOR DEMAND LABOR FORCE LABOR MARKET LABOR MARKETS LIBERALIZATION LIBERALIZATION OF TRADE LOW INCOME MEAN INCOMES MEDIAN INCOME NATURAL RESOURCES NEGATIVE IMPACT OBSERVED CHANGE OIL OPENNESS POLICY CHANGE POLICY CHANGES POLICY INDICATORS POLICY REFORMS POLICY RESEARCH POLICY VARIABLES POLITICAL ECONOMY POLITICAL ECONOMY CONSIDERATIONS POOR COUNTRIES POOR COUNTRY POSITIVE RELATIONSHIP PRODUCTIVITY REAL WAGES RELATIVE DEMAND RELATIVE WAGES RISING INEQUALITY SKILL LEVEL SKILL PREMIUM SKILLED LABOR SKILLED SECTOR SKILLED WAGES SKILLED WORKERS SOCIAL TRANSFERS TARIFF LEVELS TARIFF RATE TARIFF RATES TARIFF REDUCTION TAX REFORM TECHNOLOGICAL CHANGE TECHNOLOGICAL PROGRESS TRADE TRADE EFFECT TRADE LIBERALIZATION TRADE LIBERALIZATIONS TRADE OPENNESS TRADE POLICIES TRADE POLICY TRADE PROTECTION TRADE REFORM TRADE REFORMS TRADE REGIME TRADE REGIMES TRADE VOLUMES UNSKILLED LABOR UNSKILLED WORKERS VOLUME OF TRADE WAGE CHANGES WAGE DIFFERENTIALS WAGE DISTRIBUTION WAGE GAP WAGE RATES The objective of the paper is to answer an often asked question: If tariff rates are reduced, what will happen to wage inequality? The authors consider two types of wage inequality: between occupations (skills premium) and between industries. They use two large databases of wage inequality that have recently become available and a large data set of average tariff rates covering the period between 1980 and 2000. The authors find that tariff reduction is associated with higher inter-occupational and inter-industry inequality in poorer countries (those below the world median income) and the reverse in richer countries. However, the results for inter-occupational inequality must be treated with caution. 2012-06-25T21:53:11Z 2012-06-25T21:53:11Z 2005-04 http://documents.worldbank.org/curated/en/2005/04/5758504/tariff-liberalization-increase-wage-inequality-some-empirical-evidence http://hdl.handle.net/10986/8980 English Policy Research Working Paper; No. 3571 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	AVERAGE INCOME AVERAGE INCOMES AVERAGE TARIFF CAPITAL ACCOUNT CAPITAL FLOWS CHANGES IN TRADE COMPARATIVE ADVANTAGE CROSS-COUNTRY REGRESSION DATA COLLECTION DATA SET DECLINING INEQUALITY DEMOGRAPHICS DEPENDENT VARIABLE DEVELOPING COUNTRIES EARNINGS INEQUALITY ECONOMIC RESEARCH EMPIRICAL ANALYSIS EMPIRICAL ESTIMATION EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPIRICAL MODEL EMPIRICAL STUDIES EMPIRICAL WORK EQUILIBRIUM EXCESS PROFITS EXPLANATORY VARIABLE EXPLANATORY VARIABLES EXPORT ORIENTATION EXPORT VOLUMES EXPORTS EXTERNALITIES FAMILY BENEFITS FINANCIAL LIBERALIZATION FOREIGN COMPETITION FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENTS FOREIGN INVESTORS GDP GINI INDEX GLOBAL ECONOMY IMPACT OF TRADE INCOME DISTRIBUTION INCOME LEVEL INCREASE WAGE INEQUALITY INCREASED INEQUALITY INCREASING FUNCTION INCREASING WAGE INCREASING WAGE INEQUALITY INEQUALITY MEASURE INEQUALITY MEASURES INVESTMENT FLOWS LABOR DEMAND LABOR FORCE LABOR MARKET LABOR MARKETS LIBERALIZATION LIBERALIZATION OF TRADE LOW INCOME MEAN INCOMES MEDIAN INCOME NATURAL RESOURCES NEGATIVE IMPACT OBSERVED CHANGE OIL OPENNESS POLICY CHANGE POLICY CHANGES POLICY INDICATORS POLICY REFORMS POLICY RESEARCH POLICY VARIABLES POLITICAL ECONOMY POLITICAL ECONOMY CONSIDERATIONS POOR COUNTRIES POOR COUNTRY POSITIVE RELATIONSHIP PRODUCTIVITY REAL WAGES RELATIVE DEMAND RELATIVE WAGES RISING INEQUALITY SKILL LEVEL SKILL PREMIUM SKILLED LABOR SKILLED SECTOR SKILLED WAGES SKILLED WORKERS SOCIAL TRANSFERS TARIFF LEVELS TARIFF RATE TARIFF RATES TARIFF REDUCTION TAX REFORM TECHNOLOGICAL CHANGE TECHNOLOGICAL PROGRESS TRADE TRADE EFFECT TRADE LIBERALIZATION TRADE LIBERALIZATIONS TRADE OPENNESS TRADE POLICIES TRADE POLICY TRADE PROTECTION TRADE REFORM TRADE REFORMS TRADE REGIME TRADE REGIMES TRADE VOLUMES UNSKILLED LABOR UNSKILLED WORKERS VOLUME OF TRADE WAGE CHANGES WAGE DIFFERENTIALS WAGE DISTRIBUTION WAGE GAP WAGE RATES
spellingShingle	AVERAGE INCOME AVERAGE INCOMES AVERAGE TARIFF CAPITAL ACCOUNT CAPITAL FLOWS CHANGES IN TRADE COMPARATIVE ADVANTAGE CROSS-COUNTRY REGRESSION DATA COLLECTION DATA SET DECLINING INEQUALITY DEMOGRAPHICS DEPENDENT VARIABLE DEVELOPING COUNTRIES EARNINGS INEQUALITY ECONOMIC RESEARCH EMPIRICAL ANALYSIS EMPIRICAL ESTIMATION EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPIRICAL MODEL EMPIRICAL STUDIES EMPIRICAL WORK EQUILIBRIUM EXCESS PROFITS EXPLANATORY VARIABLE EXPLANATORY VARIABLES EXPORT ORIENTATION EXPORT VOLUMES EXPORTS EXTERNALITIES FAMILY BENEFITS FINANCIAL LIBERALIZATION FOREIGN COMPETITION FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENTS FOREIGN INVESTORS GDP GINI INDEX GLOBAL ECONOMY IMPACT OF TRADE INCOME DISTRIBUTION INCOME LEVEL INCREASE WAGE INEQUALITY INCREASED INEQUALITY INCREASING FUNCTION INCREASING WAGE INCREASING WAGE INEQUALITY INEQUALITY MEASURE INEQUALITY MEASURES INVESTMENT FLOWS LABOR DEMAND LABOR FORCE LABOR MARKET LABOR MARKETS LIBERALIZATION LIBERALIZATION OF TRADE LOW INCOME MEAN INCOMES MEDIAN INCOME NATURAL RESOURCES NEGATIVE IMPACT OBSERVED CHANGE OIL OPENNESS POLICY CHANGE POLICY CHANGES POLICY INDICATORS POLICY REFORMS POLICY RESEARCH POLICY VARIABLES POLITICAL ECONOMY POLITICAL ECONOMY CONSIDERATIONS POOR COUNTRIES POOR COUNTRY POSITIVE RELATIONSHIP PRODUCTIVITY REAL WAGES RELATIVE DEMAND RELATIVE WAGES RISING INEQUALITY SKILL LEVEL SKILL PREMIUM SKILLED LABOR SKILLED SECTOR SKILLED WAGES SKILLED WORKERS SOCIAL TRANSFERS TARIFF LEVELS TARIFF RATE TARIFF RATES TARIFF REDUCTION TAX REFORM TECHNOLOGICAL CHANGE TECHNOLOGICAL PROGRESS TRADE TRADE EFFECT TRADE LIBERALIZATION TRADE LIBERALIZATIONS TRADE OPENNESS TRADE POLICIES TRADE POLICY TRADE PROTECTION TRADE REFORM TRADE REFORMS TRADE REGIME TRADE REGIMES TRADE VOLUMES UNSKILLED LABOR UNSKILLED WORKERS VOLUME OF TRADE WAGE CHANGES WAGE DIFFERENTIALS WAGE DISTRIBUTION WAGE GAP WAGE RATES Milanovic, Branko Squire, Lyn Does Tariff Liberalization Increase Wage Inequality? Some Empirical Evidence
relation	Policy Research Working Paper; No. 3571
description	The objective of the paper is to answer an often asked question: If tariff rates are reduced, what will happen to wage inequality? The authors consider two types of wage inequality: between occupations (skills premium) and between industries. They use two large databases of wage inequality that have recently become available and a large data set of average tariff rates covering the period between 1980 and 2000. The authors find that tariff reduction is associated with higher inter-occupational and inter-industry inequality in poorer countries (those below the world median income) and the reverse in richer countries. However, the results for inter-occupational inequality must be treated with caution.
format	Publications & Research :: Policy Research Working Paper
author	Milanovic, Branko Squire, Lyn
author_facet	Milanovic, Branko Squire, Lyn
author_sort	Milanovic, Branko
title	Does Tariff Liberalization Increase Wage Inequality? Some Empirical Evidence
title_short	Does Tariff Liberalization Increase Wage Inequality? Some Empirical Evidence
title_full	Does Tariff Liberalization Increase Wage Inequality? Some Empirical Evidence
title_fullStr	Does Tariff Liberalization Increase Wage Inequality? Some Empirical Evidence
title_full_unstemmed	Does Tariff Liberalization Increase Wage Inequality? Some Empirical Evidence
title_sort	does tariff liberalization increase wage inequality? some empirical evidence
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2005/04/5758504/tariff-liberalization-increase-wage-inequality-some-empirical-evidence http://hdl.handle.net/10986/8980
_version_	1764407210293592064

Does Tariff Liberalization Increase Wage Inequality? Some Empirical Evidence

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