Pavcnik, NinaBlom, AndreasGoldberg, PinelopiSchady, Norbert2014-07-292014-07-292003-03https://hdl.handle.net/10986/19038The 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.en-USCC BY 3.0 IGOAVERAGE TARIFF LEVELSCHANGES IN TRADECURRENT ACCOUNTCURRENT ACCOUNT DEFICITDEVELOPED COUNTRIESDOMESTIC INDUSTRIESECONOMIC DEVELOPMENTEMPIRICAL STUDIESEMPLOYMENTEXCHANGE RATESEXPORT GROWTHEXPORTSFACTOR MARKETSFACTORS OF PRODUCTIONFOREIGN COMPETITIONFOREIGN TECHNOLOGYFREE TRADEGNPHIGH LEVELSIMPACT OF TRADEIMPACT OF TRADE REFORMSIMPERFECT COMPETITIONIMPORT COMPETITIONIMPORT PENETRATIONIMPORTSINCOMEINCOME INEQUALITYINNOVATIONINTERNATIONAL TRADELABORLABOR FORCELABOR MARKET ADJUSTMENTLABOR MARKET OUTCOMESLABOR MARKETSMACROECONOMIC INSTABILITYMARKET PRICESMETROPOLITAN AREASOPENNESSPOLICY INSTRUMENTSPOLICY MAKERSPRICE INDEXPRODUCTIVITYPRODUCTIVITY GROWTHTARIFF BARRIERSTARIFF DATATARIFF REDUCTIONTARIFF REDUCTIONSTECHNOLOGICAL CHANGETERTIARY EDUCATIONTRADE BARRIERSTRADE LIBERALIZATIONTRADE LIBERALIZATION INCREASESTRADE LIBERALIZATIONSTRADE MODELSTRADE POLICYTRADE PROTECTIONTRADE REFORMTRADE REFORMSTRADE REGIMETRANSPORTUNSKILLEDUNSKILLED LABORUNSKILLED WORKERSWAGE DIFFERENTIALSWAGE DISTRIBUTIONWAGE INEQUALITYWAGES10.1596/1813-9450-2982