Fajnzylber, PabloMaloney, William F.2014-08-272014-08-272000-11https://hdl.handle.net/10986/19777There are concerns that trade reform and globalization will increase the uncertainty that the average worker, especially the relatively unskilled worker, faces. The increased competitiveness of product markets and greater access to foreign inputs, the argument goes, will lead to more elastic demand for workers. This may have adverse consequences for both labor market volatility and wage dispersion. The authors argue that while the case that trade liberalization should increase own-wage elasticities may be broadly compelling for competitive import-competing industries, it is less so for imperfectly competitive, nontradable, or export industries. They test the hypothesis using establishment-level panel data from three countries with periods of liberalization. The data provide only mixed support for the idea that trade liberalization has an impact on own-wage elasticities. No consistent patterns emerge. If globalization is making the lives of workers more insecure, it is probably working through some other mechanism.en-USCC BY 3.0 IGOABSOLUTE VALUEADJUSTMENT PERIODADJUSTMENT PROCESSAVERAGE TARIFFSBALANCE OF PAYMENTSCAPITAL GOODSCAPITAL INPUTSCARTELCHANGES IN TRADECOLLUSIONCOMPETITIVE MARKETCOMPETITIVENESSCONSTANT RETURNSCONSTANT RETURNS TO SCALECOST FUNCTIONSCURRENCYDATA SETDATA SETSDEMAND CURVEDEMAND CURVESDEMAND ELASTICITIESDEMAND ELASTICITYDEPENDENT VARIABLEDEVELOPING COUNTRIESDEVELOPING WORLDDEVELOPMENT ECONOMICSDOMESTIC INDUSTRYDOMESTIC MARKETDUMPINGDUOPOLYDYNAMIC PANELECONOMETRICSECONOMIC REVIEWECONOMIC STUDIESECONOMIES OF SCALEELASTICITIESELASTICITYELASTICITY OF DEMANDELASTICITY OF SUBSTITUTIONEMPIRICAL EVIDENCEEMPIRICAL LITERATUREEMPIRICAL STUDIESEMPLOYMENTENDOGENOUS VARIABLESEQUILIBRIUMEXCHANGE RATEEXCHANGE RATE MOVEMENTSEXPENDITURESEXPLANATORY VARIABLESEXPORT INDUSTRIESEXPORTSFACTOR DEMANDFACTOR PRICESFOREIGN INVESTMENTFUNCTIONAL FORMGDPHETEROSKEDASTICITYHUMAN CAPITALIMPACT OF TRADEIMPACT OF TRADE LIBERALIZATIONIMPERFECT COMPETITIONIMPORT PENETRATIONIMPORT TARIFFSIMPORTSINCOMESINCREASING RETURNSINCREASING RETURNS TO SCALEINDUSTRIAL SECTORINTERMEDIATE INPUTSINTERNATIONAL TRADELABOR COSTSLABOR DEMANDLABOR DEMAND FUNCTIONSLABOR MARKETLABOR MARKET VOLATILITYLABOR MARKETSLAGGED DEPENDENTLDCSLIBERALIZATION OF TRADEMARGINAL COSTMARGINAL COSTSMARGINAL REVENUEMARKET BEHAVIORMARKET POWERMARKET RISKMARKET STRUCTUREMONOPOLY RENTSNEGATIVE CORRELATIONNEGATIVE IMPACTOLIGOPOLYOPEN TRADE REGIMEOUTPUT ELASTICITYPOLICY CHANGEPOLICY RESEARCHPOLICY VARIABLESPOLITICAL ECONOMYPOVERTY REDUCTIONPROCESS OF LIBERALIZATIONPRODUCERSPRODUCT MARKETSPRODUCTION TECHNOLOGYPRODUCTIVITYPROFIT MARGINSPROPORTIONAL CHANGEPROTECTIONISMQUOTASRANDOM EFFECTSRANDOM WALKREAL EXCHANGE RATEREAL EXCHANGE RATESRELATIVE PRICESRELATIVE WAGESRETURNS TO SCALEREVENUE CURVESCALE EFFECTSERIAL CORRELATIONSPECIALIZATIONSTOCKSSUBSTITUTION ELASTICITIESSUPPLY CURVESUPPLY CURVESTARIFF BARRIERSTARIFF PROTECTIONTARIFF RATETARIFF REDUCTIONSTECHNOLOGICAL CHANGETOTAL COSTSTRADE BARRIERSTRADE DATATRADE DEFICITTRADE FLOWSTRADE INTEGRATIONTRADE LIBERALIZATIONTRADE OPENNESSTRADE POLICYTRADE REFORMTRADE REFORMSTRADE REGIMESTURNOVERUNEMPLOYMENTUNSKILLED LABORUNSKILLED WORKERSVALUE ADDEDVOLUNTARY EXPORT RESTRAINTSWAGE CHANGESWAGE INEQUALITY10.1596/1813-9450-2491