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Trade Liberalization and the Wage Skill Premium: Evidence from Indonesia

Mary Amiti () and Lisa Cameron ()

No 8382, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: In this paper, we analyze the effect of reducing import tariffs on intermediate inputs and final goods on the wage skill premium within firms in Indonesia – a country with a high share of unskilled workers. We present a new finding that reducing input tariffs reduces the wage skill premium within firms that import their intermediate inputs. However, we do not find significant effects from reducing tariffs on final goods on the wage skill premium within firms.

Keywords: import tariffs; intermediate inputs; wage inequality (search for similar items in EconPapers)
JEL-codes: F10 F12 F13 F14 F16 (search for similar items in EconPapers)
Date: 2011-05
New Economics Papers: this item is included in nep-dev, nep-int, nep-lab and nep-sea
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Journal Article: Trade Liberalization and the Wage Skill Premium: Evidence from Indonesia (2012) Downloads
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