Labor Unions and the Electoral Consequences of Trade Liberalization
Pedro Ogeda,
Emanuel Ornelas,
Rodrigo R Soares
Abstract:We show that the Brazilian trade liberalization in the early 1990s led to a permanent relative decline in the vote share of left-wing presidential candidates in the regions more affected by the tariff cuts. This happened even though the shock, implemented by a right-wing party, induced a contraction in manufacturing and formal employment in the more affected regions, and despite the left’s identification with protectionist policies. To rationalize this response, we consider a new institutional channel for the … Show more
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