Trade liberalization, employment flows, and wage inequality in Brazil

Francisco H. G. Ferreira (), Phillippe G. Leite and Wai-Poi, Matthew

No 4108, Policy Research Working Paper Series from The World Bank

Abstract: 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.

Keywords: Economic Theory&Research; Free Trade; Labor Markets; Trade Policy; Trade Law (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev, nep-int and nep-ltv
Date: 2007-01-01
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Working Paper: Trade Liberalization, Employment Flows and Wage Inequality in Brazil (2007)
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Persistent link: http://EconPapers.repec.org/RePEc:wbk:wbrwps:4108

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