Publication: Trade Liberalization and Labor Market Adjustment in Brazil
Date
2003-03
ISSN
Published
2003-03
Author(s)
Pavcnik, Nina
Blom, Andreas
Goldberg, Pinelopi
Schady, Norbert
Abstract
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.
Link to Data Set
Citation
“Pavcnik, Nina; Blom, Andreas; Goldberg, Pinelopi; Schady, Norbert. 2003. Trade Liberalization and Labor Market Adjustment in Brazil. Policy Research Working Paper;No. 2982. © World Bank, Washington, DC. http://hdl.handle.net/10986/19038 License: CC BY 3.0 IGO.”
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