Does tariff liberalization increase wage inequality? Some empirical evidence
Branko Milanovic () and
Labor and Demography from University Library of Munich, Germany
The objective of the paper is to answer an often-asked question : if tariff rates are reduced, what will happen to wage inequality ? We consider two types of wage inequality : between occupations (skills premium), and between industries. We use two large data bases of wage inequality that have become recently available and a large dataset of average tariff rates all covering the period between 1980 and 2000. We 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. The results for inter-occupational inequality though must be treated with caution.
Keywords: tariffs; trade; liberalization; wages; inequality (search for similar items in EconPapers)
JEL-codes: F1 F13 D31 J31 (search for similar items in EconPapers)
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Note: Type of Document - pdf; pages: 64
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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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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpla:0501012
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