Does Tariff Liberalization Increase Wage Inequality? Some Empirical Evidence

Branko Milanovic and Lyn Squire

No 11046, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The objective of the paper is to answer an often-asked question : if tariff rates are reduced, what will happen to wage inequality ? We consider two types of wage inequality : between occupations (skills premium), and between industries. We use two large data bases of wage inequality that have become recently available and a large dataset of average tariff rates all covering the period between 1980 and 2000. We 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. The results for inter-occupational inequality though must be treated with caution.

JEL-codes: D31 F1 F13 J31 (search for similar items in EconPapers)
Date: 2005-01
New Economics Papers: this item is included in nep-ltv and nep-sea
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Published as Does Tariff Liberalization Increase Wage Inequality? Some Empirical Evidence , Branko Milanovic, Lyn Squire. in Globalization and Poverty , Harrison. 2007

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Related works:
Chapter: Does Tariff Liberalization Increase Wage Inequality? Some Empirical Evidence (2007)
Working Paper: Does tariff liberalization increase wage inequality ? - Some empirical evidence (2005)
Working Paper: Does tariff liberalization increase wage inequality? Some empirical evidence (2005)
Working Paper: Does tariff liberalization increase wage inequality? Some empirical evidence (2005)
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