The effects of exporting on wages: An evaluation using the 1999 Brazilian exchange rate devaluation

Araújo, Bruno César Pino Oliveira de; Paz, Lourenço S.

doi:10.1016/j.jdeveco.2014.07.005

Cited by 20 publications

(14 citation statements)

References 48 publications

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“…This is supported by the findings of Carneiro (1999) that all Brazilian manufacturing industries engage in rent sharing with their workers. Moreover, the idea that higher profits induce higher wages has been empirically supported by several studies such as Araújo and Paz (2014) for Brazil, Revenga (1997) for Mexico, and Hildreth and Oswald (1997) for the USA. The rent sharing behavior could result from search and match frictions or efficiency wages, for instance.…”

Section: Theoretical Frameworkmentioning

confidence: 89%

The Effects of the Chinese Imports on Brazilian Manufacturing Workers

Paz

Kapri

2019

Economies

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This study examines the impacts of imports from China and from the Rest of the World (ROW) on the wages of Brazilian manufacturing workers during 2000–2012. In this period, import penetration in Brazil grew by 25 percent, and the Chinese share of it increased from 3 to 20 percent. Using household survey data that encompass both formal and informal workers, we find that imports from China and from the ROW had different effects on manufacturing skilled and unskilled workers’ wages. Both the skilled and unskilled workers were negatively affected by an increase in the Chinese import penetration of intermediate inputs. For skilled workers, the ROW import penetration effect was negative for labor-intensive industries and positive for the other industries, while the Chinese import penetration had a positive effect on skilled workers’ wages. For the unskilled workers, we find that those in unskilled-labor intensive industries experienced positive impacts from both China and ROW import penetrations, whereas larger import penetrations reduced the wages for unskilled workers in the other industries.

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Section: Theoretical Frameworkmentioning

confidence: 89%

The Effects of the Chinese Imports on Brazilian Manufacturing Workers

Paz

Kapri

2019

Economies

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“…Similar results are found in Panel B, where TFP is positively associated with measures of trade, investment, and sales. My econometric model is based on the approach used in other studies (Araújo & Paz, 2014;Frıas et al, 2009;Verhoogen, 2008). First, consider a model that examines the change in outcome by initial productivity level:…”

Section: Methodsmentioning

confidence: 99%

“…Moreover, Frıas et al (2009) find that changes in wage premia explained most of the withinindustry wage change induced by the 1994 peso devaluation in Mexico. Araújo and Paz (2014) also use the Brazilian exchange rate devaluation in 1999 and show that wage premia significantly affected the differential increase of wage inequality among heterogeneous firms and that only some occupational groups benefited from such wage gains. Munch and Skaksen (2008) also examine the relation among exporting, wages, and human capital and find that wages are significantly and positively associated with the interaction between firms' 2 Exchange rate devaluation and trade liberalization is often used in the literature as a positive exogenous shock that increases export activities.…”

Section: Literature On Heterogeneous Firms Trade and Exporter Wage mentioning

confidence: 99%

Labor Market Outcomes of Youth and Women in Newly Industrialized and Developing Countries

Kim¹

2017

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For more information on this publication, visit http://www.rand.org/pubs/rgs_dissertations/RGSD398.html Published by the RAND Corporation, Santa Monica, Calif. R® is a registered trademark Limited Print and Electronic Distribution RightsThis document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited. Permission is given to duplicate this document for personal use only, as long as it is unaltered and complete. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial use. For information on reprint and linking permissions, please visit www.rand.org/pubs/permissions.html.The RAND Corporation is a research organization that develops solutions to public policy challenges to help make communities throughout the world safer and more secure, healthier and more prosperous. RAND is nonprofit, nonpartisan, and committed to the public interest. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.Support RAND Make a tax-deductible charitable contribution at www.rand.org/giving/contribute www.rand.orgiii AbstractThis dissertation includes three essays that empirically examine the effects of exogenous shocks and labor market policies on employment, wages, and human capital development of youth and women. The first two essays focus on Korea, a newly industrialized country that depends heavily on trade, while the third essay examines two sub-Saharan African countries, Liberia and Malawi.

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“… In a related literature, Araujo and Paz () (for Brazil); Frias, Kaplan, and Verhoogen () (for Mexico); and Macis and Schivardi () investigate the relationship between exports and wage premia exploiting sudden and large exchange rate devaluation episodes as a source of exogenous variation in the firms’ incentive to export. …”

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confidence: 99%

International competition, returns to skill and labour market adjustment

2018

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Does increased import competition lead to higher returns to skill within an industry and, therefore, to greater incentives for skill acquisition? Does it also induce skill upgrading by the industry's existing workforce? To answer these questions, we follow individual workers across skills/occupations, firms and industries using a longitudinal matched employer–employee data set covering virtually all workers and firms in Portugal over the 1986–2000 period. To identify the effects of international competition, we use two exogenous measures at the industry level. First, a quasi‐natural experiment based on the strong appreciation of the Portuguese currency in 1989–92 period and pre‐existing differences in trade exposure across industries in a differences‐in‐differences estimation. Second, source‐weighted real exchange rates defined at the industry level. Based on both empirical strategies, and on two different skill definitions, we show that international competition increases returns to skill and induces skill/occupation upgrading within an industry.

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The effects of exporting on wages: An evaluation using the 1999 Brazilian exchange rate devaluation

Cited by 20 publications

References 48 publications

The Effects of the Chinese Imports on Brazilian Manufacturing Workers

The Effects of the Chinese Imports on Brazilian Manufacturing Workers

Labor Market Outcomes of Youth and Women in Newly Industrialized and Developing Countries

International competition, returns to skill and labour market adjustment

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