Publication: Trade Liberalization, Employment Flows, and Wage Inequality in Brazil
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2007-01
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2012-06-01
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Using nationally representative, economywide data, this paper investigates the relative importance of trade-mandated effects on industry wage premia; industry and economywide skill premia; and employment flows in accounting for changes in the wage distribution in Brazil during the 1988-95 trade liberalization. Unlike in other Latin American countries, trade liberalization appears to have made a significant contribution toward a reduction in wage inequality. These effects have not occurred through changes in industry-specific (wage or skill) premia. Instead, they appear to have been channeled through substantial employment flows across sectors and formality categories. Changes in the economywide skill premium are also important.
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“Leite, Phillippe G.; Ferreira, Francisco H.G.; Wai-Poi, Matthew. 2007. Trade Liberalization, Employment Flows, and Wage Inequality in Brazil. Policy Research Working Paper; No. 4108. © World Bank. http://hdl.handle.net/10986/6880 License: CC BY 3.0 IGO.”
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