Leite, Phillippe G.Ferreira, Francisco H.G.Wai-Poi, Matthew2012-06-012012-06-012007-01https://hdl.handle.net/10986/6880Using 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.CC BY 3.0 IGOAGGREGATE TRADEAGRICULTUREBENCHMARKCOMPETITIVE CONDITIONSCOMPETITIVE MARKETSCOMPETITIVE PRESSURESCONSUMERSCOUNTERFACTUAL WAGE DISTRIBUTIONCUSTOMSDEVELOPING REGIONSDOMESTIC PRICESDOMESTIC PRODUCTIONEARNINGS REGRESSIONSEMPLOYMENT EFFECTSEMPLOYMENT LEVELSEMPLOYMENT PROBABILITIESEMPLOYMENT SHAREEXCHANGE RATEEXCHANGE RATESEXPORT SHARESEXPORTERSFACTORS OF PRODUCTIONGROUP WORKERSGROWTH RATEHOUSEHOLD INCOMEHOUSEHOLD SURVEYIMPACT OF TRADEIMPACT OF TRADE LIBERALIZATIONIMPERFECT COMPETITIONIMPORT COMPETITIONIMPORT PENETRATIONIMPORTSINCOME LEVELSINDUSTRY CHARACTERISTICSINDUSTRY WAGEINEQUALITY MEASURESINFORMAL EMPLOYMENTINFORMAL SECTORINTERNATIONAL TRADING SYSTEMLABOR FORCELABOR MARKETLABOR MARKETSLABOR REALLOCATIONLATIN AMERICANMARGINAL EFFECTSNATURAL RESOURCESNON-TARIFF BARRIERSOCCUPATIONOCCUPATIONSOPENNESSOUTSOURCINGPER CAPITA INCOMESPOLICY MAKERSPOLICY RESEARCHPREVIOUS STUDIESPRICES FALLPRODUCT MARKETSPRODUCT PRICESPRODUCTION WORKERSPROTECTED INDUSTRIESPUBLIC SERVICERATES OF PROTECTIONRURAL WORKERSSKILL PREMIUMTARIFF BARRIERSTARIFF RATESTARIFF REVENUESTOTAL EMPLOYMENTTOTAL FACTOR PRODUCTIVITYTOTAL FACTOR PRODUCTIVITY GROWTHTRADE DATATRADE FLOWSTRADE LIBERALIZATIONTRADE LIBERALIZATIONSTRADE MODELSTRADE OPENNESSTRADE POLICYTRADE REFORMTRADE REFORMSTRADE VARIABLESUNEMPLOYMENTUNSKILLED LABORUNSKILLED WORKERSWAGE DISTRIBUTIONWAGE GAPWAGE GROWTHWAGE INEQUALITYWAGE LEVELSWAGE PREMIUMWAGESWORKERWORLD TRADEWorld Bank10.1596/1813-9450-4108