Galiano, SebastianPorto, Guido G.2012-06-212012-06-212006-05https://hdl.handle.net/10986/8684The authors provide new evidence on the impacts of trade reforms on wages and wage inequality in developing countries. While most of the current literature on the topic achieves identification by comparing outcomes before and after one episode of trade liberalization across industries, they propose a stronger identifying strategy. The authors explore the recent historical record of policy changes adopted by Argentina: from significant protection in the early 1970s, to the first episode of liberalization during the late 1970s, back to a slowdown of reforms during the 1980s, to the second episode of liberalization in the 1990s. These swings in trade policy comprise broken trends in trade reforms that they can compare with observed trends in wages and wage inequality. After setting up unusual historical data sets of trends in tariffs, trends in wages, and trends in wage inequality, the evidence supports two well-known hypotheses: trade liberalization, other things being equal, (1) has reduced wages, and (2) has increased wage inequality.CC BY 3.0 IGOAGGREGATE SHOCKSANTI-DUMPING MEASURESAVERAGE TARIFFAVERAGE TARIFFSAVERAGE WAGESBUSINESS CYCLECAPITAL GOODSCHANGES IN TRADECOLLEGE EDUCATIONCOMMERCIAL POLICYCUSTOMSDEBTDEBT CRISISDEMAND CURVEDEREGULATIONDEVELOPMENT ECONOMICSDUMPINGEARNINGS REGRESSIONSECONOMETRIC MODELSECONOMIC HISTORYEDUCATIONAL ATTAINMENTELASTICITYEMPLOYMENT LEVELEMPLOYMENT STATUSEXCHANGE RATESEXTERNAL TARIFFFOREIGN COMPETITIONFULL LIBERALIZATIONGDPHOUSEHOLD SURVEYHOUSEHOLD SURVEYSHUMAN CAPITALIMPACT OF TRADEIMPACT OF TRADE LIBERALIZATIONIMPACT OF TRADE REFORMSIMPORT PENETRATIONIMPORT PRICEIMPORT TARIFFIMPORT TARIFFSIMPORT TAXESIMPORTSINCOME INEQUALITYINDUSTRIAL POLICIESINDUSTRY CHARACTERISTICSINDUSTRY WAGEINDUSTRY WAGESINTERNATIONAL ECONOMICSINTERNATIONAL TRADELABOR DEMANDLABOR EARNINGLABOR ECONOMICSLABOR FORCELABOR MARKETLABOR MARKETSLABOR REGULATIONLABOR REGULATIONSLABOR RELATIONSLABOR SHARELABOR SUPPLYLABOR SURVEYSLIBERALIZATION OF TRADELOW TARIFFSNON-TARIFF BARRIERSOPENNESSPOLITICAL ECONOMYPOSITIVE EFFECTSPRIMARY EDUCATIONQUANTITATIVE RESTRICTIONSREAL WAGESREDUCTION IN TARIFFSREGIONAL TRADESEMISKILLED LABORSEMISKILLED WORKERSSKILL PREMIUMSKILLED WAGE PREMIUMSTATISTICAL DATASUPPLY CURVESUPPLY CURVESTARIFF BARRIERSTARIFF CLASSIFICATIONTARIFF CUTSTARIFF LEVELSTARIFF PROTECTIONTARIFF RATETARIFF REDUCTIONTARIFF REFORMTARIFF REFORMSTARIFF SCHEDULESTRADE AGREEMENTTRADE BARRIERSTRADE DATATRADE FORUMTRADE LIBERALIZATIONTRADE POLICIESTRADE POLICYTRADE POLICY REFORMSTRADE PROTECTIONTRADE REFORMTRADE REFORMSUNEMPLOYMENTUNSKILLED LABORUNSKILLED WORKERUNSKILLED WORKERSWAGE DATAWAGE INEQUALITYWAGE PREMIUMSWAGESWORKERWorld Bank10.1596/1813-9450-3905