Does tariff liberalization increase wage inequality ? - Some empirical evidence

Branko Milanovic and Lyn Squire

No 3571, Policy Research Working Paper Series from The World Bank

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

Keywords: Inequality; Environmental Economics&Policies; TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT; Poverty Impact Evaluation; Economic Theory&Research (search for similar items in EconPapers)
Date: 2005-04-01
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (42)

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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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