EconPapers    
Economics at your fingertips  
 

Trade and Workers: Evidence from the Philippines

Rana Hasan and Lan Chen ()
Additional contact information
Lan Chen: Graduate student, University of Hawaii-Manoa

No 61, Economics Study Area Working Papers from East-West Center, Economics Study Area

Abstract: We combine labor force survey data with trade and production data to examine the impact of trade on wages and employment in the Philippines' manufacturing section. Our main finding are as follows. First, in contrast to findings typically reported for Latin American countries, our data indicate that wage inequality in the Philippines' manufacturing sector has declined over the period in which trade liberalization has been undertaken. This is despite the fact that reductions in tariff rates were largest in less skill intensive manufacturing industries. There has also been an absence of any secular rise in returns to higher education. Second, tariff reductions have been associated with declines in industry wage premiums in capital-intensive industries. Moreover, these declines appear to have been largest for skilled workers. Finally, tariff reductions have had an insignificant effect on both employment as well as the average hours of work of full-time employees across industries. These findings are consistent with a scenario where workers in capital-intensive industries, especially the more skilled ones, earned rents prior to trade liberalization; liberalization may have worked to erode these.

New Economics Papers: this item is included in nep-int, nep-lab and nep-sea
Date: 2003-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
http://www.eastwestcenter.org/fileadmin/stored/pdfs/ECONwp061.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ewc:wpaper:wp61

Access Statistics for this paper

More papers in Economics Study Area Working Papers from East-West Center, Economics Study Area Contact information at EDIRC.
Bibliographic data for series maintained by Brenda Higashimoto (). This e-mail address is bad, please contact .

 
Page updated 2019-12-02
Handle: RePEc:ewc:wpaper:wp61