Trade liberalization and labor market adjustment in Brazil [electronic resource] / Nina Pavcnik [and others].

The 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;...

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Bibliographic Details
Online Access: Full Text (via Open Knowledge Repository)
Corporate Author: World Bank. Latin America and the Caribbean Regional Office. Poverty Sector Unit
Other Authors: Pavcnik, Nina
Format: Electronic eBook
Language:English
Published: Washington, D.C. : World Bank, Latin America and the Caribbean Region, Poverty Sector Unit, [2003]
Series:Policy research working papers ; no. 2982.
Subjects:

MARC

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245 0 0 |a Trade liberalization and labor market adjustment in Brazil  |h [electronic resource] /  |c Nina Pavcnik [and others]. 
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520 3 |a The 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. This paper--a product of the Poverty Sector Unit, Latin America and the Caribbean Region--is part of a larger effort in the region to understand the effects of globalization on inequality in developing countries. 
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