Trade Liberalization and Labor Market Adjustment in Brazil

The authors study the impact of the 1988-94 trade liberalization in Brazil on wage distribution. They explore three main channels through which trade liberalization could have affected wage distribution: (1) increasing returns to skilled workers be...

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Main Authors: Pavcnik, Nina, Blom, Andreas, Goldberg, Pinelopi, Schady, Norbert
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2014
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2003/03/2166848/trade-liberalization-labor-market-adjustment-brazil
http://hdl.handle.net/10986/19038
id okr-10986-19038
recordtype oai_dc
spelling okr-10986-190382021-04-23T14:03:42Z Trade Liberalization and Labor Market Adjustment in Brazil Pavcnik, Nina Blom, Andreas Goldberg, Pinelopi Schady, Norbert AVERAGE TARIFF LEVELS CHANGES IN TRADE CURRENT ACCOUNT CURRENT ACCOUNT DEFICIT DEVELOPED COUNTRIES DOMESTIC INDUSTRIES ECONOMIC DEVELOPMENT EMPIRICAL STUDIES EMPLOYMENT EXCHANGE RATES EXPORT GROWTH EXPORTS FACTOR MARKETS FACTORS OF PRODUCTION FOREIGN COMPETITION FOREIGN TECHNOLOGY FREE TRADE GNP HIGH LEVELS IMPACT OF TRADE IMPACT OF TRADE REFORMS IMPERFECT COMPETITION IMPORT COMPETITION IMPORT PENETRATION IMPORTS INCOME INCOME INEQUALITY INNOVATION INTERNATIONAL TRADE LABOR LABOR FORCE LABOR MARKET ADJUSTMENT LABOR MARKET OUTCOMES LABOR MARKETS MACROECONOMIC INSTABILITY MARKET PRICES METROPOLITAN AREAS OPENNESS POLICY INSTRUMENTS POLICY MAKERS PRICE INDEX PRODUCTIVITY PRODUCTIVITY GROWTH TARIFF BARRIERS TARIFF DATA TARIFF REDUCTION TARIFF REDUCTIONS TECHNOLOGICAL CHANGE TERTIARY EDUCATION TRADE BARRIERS TRADE LIBERALIZATION TRADE LIBERALIZATION INCREASES TRADE LIBERALIZATIONS TRADE MODELS TRADE POLICY TRADE PROTECTION TRADE REFORM TRADE REFORMS TRADE REGIME TRANSPORT UNSKILLED UNSKILLED LABOR UNSKILLED WORKERS WAGE DIFFERENTIALS WAGE DISTRIBUTION WAGE INEQUALITY WAGES The authors study the impact of the 1988-94 trade liberalization in Brazil on wage distribution. They explore three main channels through which trade liberalization could have affected wage distribution: (1) increasing returns to skilled workers because of Hecksher-Ohlin adjustments to trade policy; (2) trade-induced skill-biased technological change; and (3) changes in industry wage premiums. The results suggest that trade reform in Brazil did contribute to the growing skill premium through skill-biased technological change, which was partially instigated by increased foreign competition. The authors also find that sector-specific returns to skill increased more in sectors with bigger tariff reductions. But they find little support for Hecksher-Ohlin type adjustments to trade reform. Overall, the effects of trade reform on wage inequality seem relatively small. 2014-07-29T14:09:39Z 2014-07-29T14:09:39Z 2003-03 http://documents.worldbank.org/curated/en/2003/03/2166848/trade-liberalization-labor-market-adjustment-brazil http://hdl.handle.net/10986/19038 English en_US Policy Research Working Paper;No. 2982 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean Brazil
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic AVERAGE TARIFF LEVELS
CHANGES IN TRADE
CURRENT ACCOUNT
CURRENT ACCOUNT DEFICIT
DEVELOPED COUNTRIES
DOMESTIC INDUSTRIES
ECONOMIC DEVELOPMENT
EMPIRICAL STUDIES
EMPLOYMENT
EXCHANGE RATES
EXPORT GROWTH
EXPORTS
FACTOR MARKETS
FACTORS OF PRODUCTION
FOREIGN COMPETITION
FOREIGN TECHNOLOGY
FREE TRADE
GNP
HIGH LEVELS
IMPACT OF TRADE
IMPACT OF TRADE REFORMS
IMPERFECT COMPETITION
IMPORT COMPETITION
IMPORT PENETRATION
IMPORTS
INCOME
INCOME INEQUALITY
INNOVATION
INTERNATIONAL TRADE
LABOR
LABOR FORCE
LABOR MARKET ADJUSTMENT
LABOR MARKET OUTCOMES
LABOR MARKETS
MACROECONOMIC INSTABILITY
MARKET PRICES
METROPOLITAN AREAS
OPENNESS
POLICY INSTRUMENTS
POLICY MAKERS
PRICE INDEX
PRODUCTIVITY
PRODUCTIVITY GROWTH
TARIFF BARRIERS
TARIFF DATA
TARIFF REDUCTION
TARIFF REDUCTIONS
TECHNOLOGICAL CHANGE
TERTIARY EDUCATION
TRADE BARRIERS
TRADE LIBERALIZATION
TRADE LIBERALIZATION INCREASES
TRADE LIBERALIZATIONS
TRADE MODELS
TRADE POLICY
TRADE PROTECTION
TRADE REFORM
TRADE REFORMS
TRADE REGIME
TRANSPORT
UNSKILLED
UNSKILLED LABOR
UNSKILLED WORKERS
WAGE DIFFERENTIALS
WAGE DISTRIBUTION
WAGE INEQUALITY
WAGES
spellingShingle AVERAGE TARIFF LEVELS
CHANGES IN TRADE
CURRENT ACCOUNT
CURRENT ACCOUNT DEFICIT
DEVELOPED COUNTRIES
DOMESTIC INDUSTRIES
ECONOMIC DEVELOPMENT
EMPIRICAL STUDIES
EMPLOYMENT
EXCHANGE RATES
EXPORT GROWTH
EXPORTS
FACTOR MARKETS
FACTORS OF PRODUCTION
FOREIGN COMPETITION
FOREIGN TECHNOLOGY
FREE TRADE
GNP
HIGH LEVELS
IMPACT OF TRADE
IMPACT OF TRADE REFORMS
IMPERFECT COMPETITION
IMPORT COMPETITION
IMPORT PENETRATION
IMPORTS
INCOME
INCOME INEQUALITY
INNOVATION
INTERNATIONAL TRADE
LABOR
LABOR FORCE
LABOR MARKET ADJUSTMENT
LABOR MARKET OUTCOMES
LABOR MARKETS
MACROECONOMIC INSTABILITY
MARKET PRICES
METROPOLITAN AREAS
OPENNESS
POLICY INSTRUMENTS
POLICY MAKERS
PRICE INDEX
PRODUCTIVITY
PRODUCTIVITY GROWTH
TARIFF BARRIERS
TARIFF DATA
TARIFF REDUCTION
TARIFF REDUCTIONS
TECHNOLOGICAL CHANGE
TERTIARY EDUCATION
TRADE BARRIERS
TRADE LIBERALIZATION
TRADE LIBERALIZATION INCREASES
TRADE LIBERALIZATIONS
TRADE MODELS
TRADE POLICY
TRADE PROTECTION
TRADE REFORM
TRADE REFORMS
TRADE REGIME
TRANSPORT
UNSKILLED
UNSKILLED LABOR
UNSKILLED WORKERS
WAGE DIFFERENTIALS
WAGE DISTRIBUTION
WAGE INEQUALITY
WAGES
Pavcnik, Nina
Blom, Andreas
Goldberg, Pinelopi
Schady, Norbert
Trade Liberalization and Labor Market Adjustment in Brazil
geographic_facet Latin America & Caribbean
Brazil
relation Policy Research Working Paper;No. 2982
description The authors study the impact of the 1988-94 trade liberalization in Brazil on wage distribution. They explore three main channels through which trade liberalization could have affected wage distribution: (1) increasing returns to skilled workers because of Hecksher-Ohlin adjustments to trade policy; (2) trade-induced skill-biased technological change; and (3) changes in industry wage premiums. The results suggest that trade reform in Brazil did contribute to the growing skill premium through skill-biased technological change, which was partially instigated by increased foreign competition. The authors also find that sector-specific returns to skill increased more in sectors with bigger tariff reductions. But they find little support for Hecksher-Ohlin type adjustments to trade reform. Overall, the effects of trade reform on wage inequality seem relatively small.
format Publications & Research :: Policy Research Working Paper
author Pavcnik, Nina
Blom, Andreas
Goldberg, Pinelopi
Schady, Norbert
author_facet Pavcnik, Nina
Blom, Andreas
Goldberg, Pinelopi
Schady, Norbert
author_sort Pavcnik, Nina
title Trade Liberalization and Labor Market Adjustment in Brazil
title_short Trade Liberalization and Labor Market Adjustment in Brazil
title_full Trade Liberalization and Labor Market Adjustment in Brazil
title_fullStr Trade Liberalization and Labor Market Adjustment in Brazil
title_full_unstemmed Trade Liberalization and Labor Market Adjustment in Brazil
title_sort trade liberalization and labor market adjustment in brazil
publisher World Bank, Washington, DC
publishDate 2014
url http://documents.worldbank.org/curated/en/2003/03/2166848/trade-liberalization-labor-market-adjustment-brazil
http://hdl.handle.net/10986/19038
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