Publication:
Trade Policy, Income Risk, and Welfare

dc.contributor.author Krebs, Tom
dc.contributor.author Krishna, Pravin
dc.contributor.author Maloney, William
dc.date.accessioned 2012-06-15T21:04:15Z
dc.date.available 2012-06-15T21:04:15Z
dc.date.issued 2005-06
dc.description.abstract This paper studies empirically the relationship between trade policy and individual income risk faced by workers, and uses the estimates of this empirical analysis to evaluate the welfare effect of trade reform. The analysis proceeds in three steps. First, longitudinal data on workers are used to estimate time-varying individual income risk parameters in various manufacturing sectors. Second, the estimated income risk parameters and data on trade barriers are used to analyze the relationship between trade policy and income risk. Finally, a simple dynamic incomplete-market model is used to assess the corresponding welfare costs. In the implementation of this methodology using Mexican data, the paper finds that trade policy changes have a significant short run effect on income risk. Further, while the tariff level has an insignificant mean effect, it nevertheless changes the degree to which macroeconomic shocks affect income risk. en
dc.identifier http://documents.worldbank.org/curated/en/2005/06/6030533/trade-policy-income-risk-welfare
dc.identifier.uri http://hdl.handle.net/10986/8215
dc.language English
dc.publisher World Bank, Washington, DC
dc.relation.ispartofseries Policy Research Working Paper; No. 3622
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo/
dc.subject ADJUSTMENT COSTS
dc.subject AGGREGATE VOLATILITY
dc.subject AUTOCOVARIANCE
dc.subject BORDER TRADE
dc.subject BUSINESS CYCLE
dc.subject BUSINESS CYCLES
dc.subject CAPITAL MARKET
dc.subject CHANGES IN TRADE
dc.subject CLOSED ECONOMY
dc.subject DATA SET
dc.subject DATA SETS
dc.subject DEMAND ELASTICITY
dc.subject DEPENDENT VARIABLE
dc.subject DOWNWARD RIGIDITY OF WAGES
dc.subject ECONOMETRIC ANALYSIS
dc.subject ECONOMETRIC ISSUES
dc.subject ECONOMIC GROWTH
dc.subject ECONOMICS
dc.subject ECONOMISTS
dc.subject ELASTICITY
dc.subject EMPIRICAL ANALYSIS
dc.subject EMPIRICAL ESTIMATES
dc.subject EMPIRICAL EVIDENCE
dc.subject EMPIRICAL LITERATURE
dc.subject EMPIRICAL RESULTS
dc.subject EMPIRICAL STUDIES
dc.subject EMPIRICAL WORK
dc.subject EMPLOYMENT
dc.subject ENDOGENOUS DETERMINATION
dc.subject EQUILIBRIUM
dc.subject EXCHANGE RATE
dc.subject EXTENDED UNEMPLOYMENT
dc.subject FOREIGN COMPETITION
dc.subject FORMAL ANALYSIS
dc.subject FUTURE RESEARCH
dc.subject GDP
dc.subject GENERAL EQUILIBRIUM MODEL
dc.subject GROWTH RATE
dc.subject HIGH INFLATION
dc.subject HUMAN CAPITAL
dc.subject IDIOSYNCRATIC SHOCKS
dc.subject IMPACT OF TRADE
dc.subject IMPACT OF TRADE LIBERALIZATION
dc.subject IMPORT PENETRATION
dc.subject INCOME
dc.subject INCOME DATA
dc.subject INCOME INEQUALITY
dc.subject INCOME LEVELS
dc.subject INCOME SHOCKS
dc.subject INCOMPLETE MARKETS
dc.subject INDIVIDUAL INCOMES
dc.subject INFLATION
dc.subject INFLATION RATES
dc.subject INSURANCE
dc.subject INSURANCE MARKETS
dc.subject INTERNATIONAL PRODUCTION
dc.subject JOB CREATION
dc.subject LABOR DEMAND
dc.subject LABOR DEMAND FUNCTIONS
dc.subject LABOR FORCE
dc.subject LABOR MARKET
dc.subject LINEAR REGRESSION
dc.subject LONGITUDINAL DATA
dc.subject LOWERING TRADE BARRIERS
dc.subject MACROECONOMIC CONDITIONS
dc.subject MACROECONOMIC ENVIRONMENT
dc.subject MACROECONOMIC FACTORS
dc.subject MACROECONOMIC SHOCKS
dc.subject MACROECONOMIC VARIABLES
dc.subject MARKET LIBERALIZATION
dc.subject MEAN VALUE
dc.subject MEASUREMENT ERROR
dc.subject OPEN ECONOMIES
dc.subject OPENNESS
dc.subject PERMANENT INCOME
dc.subject POLICY CHANGE
dc.subject POLICY CHANGES
dc.subject POLICY REFORM
dc.subject POLICY REFORMS
dc.subject POLICY RESEARCH
dc.subject POLITICAL ECONOMY
dc.subject POSITIVE EFFECTS
dc.subject PRESENT VALUE
dc.subject PRODUCTIVITY
dc.subject RANDOM WALK
dc.subject REAL EXCHANGE RATE
dc.subject REAL WAGE
dc.subject REAL WAGES
dc.subject REDUCTION IN TARIFFS
dc.subject REGRESSION ANALYSIS
dc.subject RESOURCE ALLOCATION
dc.subject RISK AVERSION
dc.subject SAVINGS
dc.subject SELECTION BIAS
dc.subject SERIAL CORRELATION
dc.subject SERIAL DEPENDENCE
dc.subject SIGNIFICANT RELATIONSHIP
dc.subject TARIFF DATA
dc.subject TARIFF RATE
dc.subject TARIFF RATES
dc.subject TARIFF REDUCTION
dc.subject TARIFF REDUCTIONS
dc.subject TECHNOLOGICAL PROGRESS
dc.subject TRADE AGREEMENT
dc.subject TRADE BARRIERS
dc.subject TRADE LIBERALIZATION
dc.subject TRADE LIBERALIZATION INCREASES
dc.subject TRADE OPENNESS
dc.subject TRADE PATTERNS
dc.subject TRADE POLICY
dc.subject TRADE REFORM
dc.subject TRADE REFORMS
dc.subject TRANSITORY SHOCKS
dc.subject UNEMPLOYMENT
dc.subject WAGE CHANGES
dc.subject WAGE RATE
dc.subject WAGE RATES
dc.subject WAGES
dc.subject WELFARE EFFECTS
dc.subject WORKERS EXPERIENCE
dc.subject WORLD PRICES
dc.title Trade Policy, Income Risk, and Welfare en
dspace.entity.type Publication
okr.doctype Publications & Research :: Policy Research Working Paper
okr.doctype Publications & Research
okr.docurl http://documents.worldbank.org/curated/en/2005/06/6030533/trade-policy-income-risk-welfare
okr.identifier.doi 10.1596/1813-9450-3622
okr.identifier.externaldocumentum 000112742_20050628085235
okr.identifier.internaldocumentum 6030533
okr.identifier.report WPS3622
okr.language.supported en
okr.pdfurl http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2005/06/28/000112742_20050628085235/Rendered/PDF/wps3622.pdf en
okr.region.administrative Latin America & Caribbean
okr.region.country Mexico
okr.unit Development Research Group (DECRG)
okr.volume 1 of 1
relation.isAuthorOfPublication c7d4d195-f430-5039-b564-a3e95b24a117
relation.isSeriesOfPublication 26e071dc-b0bf-409c-b982-df2970295c87
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