Skill Premiums of Trading in International Markets and Equity: Some Lessons for Pro Poor Education Policies in Developing Countries

Dawood Mamoon

MPRA Paper from University Library of Munich, Germany

Abstract: The aim of this paper is to examine whether the human capital accumulation, that is a result of increased trade, further exacerbates industrial wage differentials. We find that level of education is one of the key determinants in explaining wage inequalities. Though countries which have a higher level of human capital do well on the inequality front, our results suggest that post liberalization human capital accumulation is associated with higher premiums to skilled labor thus increasing wage gaps. In this context, governments in developing countries may need to increase the mean level of human capital to achieve equity in labor markets.

Keywords: Integration; Trade Liberalization; Wage Inequality (search for similar items in EconPapers)
JEL-codes: F16 I20 J01 (search for similar items in EconPapers)
Date: 2007-08-01
New Economics Papers: this item is included in nep-hrm, nep-int and nep-lab
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:4319

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