Pavcnik, NinaBlom, AndreasGoldberg, PinelopiSchady, Norbert2014-02-262014-02-262004-09World Bank Economic Reviewhttps://hdl.handle.net/10986/17163Industry affiliation provides an important channel through which trade liberalization can affect worker earnings and wage inequality between skilled and unskilled workers. This empirical study of the impact of the 1988-94 trade liberalization in Brazil on the industry wage structure suggests that although industry affiliation is an important component of worker earnings, the structure of industry wage premiums is relatively stable over time. There is no statistical association between changes in industry wage premiums and changes in trade policy or between industry-specific skill premiums to university graduates and trade policy. Thus trade liberalization in Brazil did not significantly contribute to increased wage inequality between skilled and unskilled workers through changes in industry wage premiums. The difference between these results and those obtained for other countries (such as Colombia and Mexico) provides fruitful ground for studying the conditions under which trade reforms do not have an adverse effect on industry wage differentialsen-USCC BY-NC-ND 3.0 IGOABSOLUTE VALUEADVERSE EFFECTAFFECTED WORKERAVERAGE TARIFFAVERAGE TARIFFSAVERAGE WAGEAVERAGE WAGE PREMIUMBARGAINING POWERBENEFITS OF TRADEBILATERAL TRADECHANGES IN TRADECOMPETITIVENESSCURRENT ACCOUNTCURRENT ACCOUNT DEFICITDEVELOPING COUNTRIESDEVELOPMENT ECONOMICSDOMESTIC CONSUMPTIONDOMESTIC INDUSTRIESECONOMIC RESEARCHEMPLOYMENTESTIMATED WAGE PREMIUMSEXCHANGE RATE FLUCTUATIONEXCHANGE RATE FLUCTUATIONSEXCHANGE RATESEXPORTSFACTORS OF PRODUCTIONFOREIGN COMPETITIONFOREIGN GOODSFORMAL ANALYSISFREE TRADEFUTURE RESEARCHGDPGLOBALIZATIONGNPHIGH LEVELSHIGH TARIFFSHOUSEHOLD SURVEYSHUMAN CAPITALIMPACT OF TRADEIMPACT OF TRADE LIBERALIZATIONIMPACT OF TRADE REFORMSIMPERFECT COMPETITIONIMPORT COMPETITIONIMPORT LICENSESIMPORT PENETRATIONIMPORT SUBSTITUTIONIMPORTSINDUSTRIALIZATIONINDUSTRY CHARACTERISTICSINDUSTRY WAGEINDUSTRY WAGE DIFFERENTIALSINDUSTRY WAGESINFORMAL SECTORINFORMAL SECTOR WORKERSINFORMAL WORKERSINTERNATIONAL COMPETITIONINTERNATIONAL ECONOMICSJOB SECURITYLABOR ECONOMICSLABOR FORCELABOR MARKETLABOR MARKET INSTITUTIONSLABOR MARKET POLICIESLABOR MARKET REGULATIONLABOR MARKET REGULATIONSLABOR MARKETSLABOR MOBILITYLABOR RELATIONSLABOR SUPPLYLIVING STANDARDSLOBBYINGMACROECONOMIC SHOCKSMANUFACTURING INDUSTRIESMARGINAL PRODUCTMARKET SHAREMINIMUM WAGEMINIMUM WAGESMOST FAVORED NATIONOFFICE WORKERSOPENNESSPOLITICAL ECONOMYPREVIOUS STUDIESPREVIOUS WORKPRICE INDEXPRIMARY EDUCATIONPRODUCT PRICESPRODUCTION WORKERSPRODUCTIVITYPRODUCTIVITY GAPPRODUCTIVITY GROWTHPRODUCTIVITY IMPROVEMENTSPROFIT MARGINSSKILL PREMIUMSKILL PREMIUMSTARIFF CHANGESTARIFF DATATARIFF DISPERSIONTARIFF FORMATIONTARIFF LEVELSTARIFF RATESTARIFF REDUCTIONSTEXTILE INDUSTRYTOTAL OUTPUTTRADE DATATRADE FLOWSTRADE LIBERALIZATIONTRADE LIBERALIZATION INCREASESTRADE LIBERALIZATIONSTRADE POLICYTRADE PROTECTIONTRADE REFORMTRADE REFORMSTRADE REGIMESTRADE VOLUMESTRANSPORT COSTSUNILATERAL TRADEUNILATERAL TRADE LIBERALIZATIONUNION MEMBERSHIPUNION WAGE PREMIUMUNSKILLED WORKERSVALUE ADDEDWAGE DISPERSIONWAGE DISTRIBUTIONWAGE EFFECTSWAGE INEQUALITYWAGE PREMIUMWAGE PREMIUMSWAGE STRUCTUREWORKERWORKERS EXPERIENCEJournal ArticleWorld Bank10.1596/17163