2021
DOI: 10.1080/09638199.2020.1871502
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Trade liberalization and wage inequality: Evidence from Chile

Abstract: This study analyzes the impacts of further tariff reductions resulting from the proliferation of regional trade agreements on wage inequality between skilled and unskilled workers in Chile in the 2000s. Thus, we use data on effective tariff rates instead of uniform most-favored-nation rates to measure trade liberalization. We match panel data on industry characteristics, including effective tariff rates, to pooled individual cross-section data from national household surveys at the industry level. We find that… Show more

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Cited by 10 publications
(3 citation statements)
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“…Attanasio, Goldberg, and Pavcnik [33] analyzed Colombian data. Han, Liu, and Zhang [6] investigated the HOS theory in Chinese regions, and Murakami [10] considered the data from Chile.…”
Section: International Trade and Incomementioning
confidence: 99%
See 1 more Smart Citation
“…Attanasio, Goldberg, and Pavcnik [33] analyzed Colombian data. Han, Liu, and Zhang [6] investigated the HOS theory in Chinese regions, and Murakami [10] considered the data from Chile.…”
Section: International Trade and Incomementioning
confidence: 99%
“…However, some researchers claimed the contrary outcome was observed [4][5][6][7] or concluded that international trade did not exert an influence on income inequality [8]. Some claim that international trade leads to secondary outcomes, such as the import of new technologies, leading to a rise in the demand for skilled workers and increasing income inequality in developing countries, contradicting the HOS theory [9,10].…”
Section: Introductionmentioning
confidence: 99%
“…Moreover, Watekhi et al (2018) revealed that trade liberalization knowingly subsidizes to increasing wage differentials in Indonesia. Furthermore, Murakami (2021) initiate that a decrease in real tariffs on final goods steers to an upsurge in industry skill and wage premiums. Specifically, he found that the effect on the industry-skill-premiums is bigger for educated workers working in large firms.…”
Section: Introductionmentioning
confidence: 99%