Workers and Trade Liberalization: The Impact of Trade Reforms in Mexico on Wages and Employment

Feliciano, Zadia M.

doi:10.2307/2696188

Cited by 125 publications

(122 citation statements)

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“…In sum, the evidence in Goldberg and Pavcnik (2005) suggests that industry tariff cuts are associated with proportional declines in relative industry wages. This positive association between trade policy and industry wages has also been noted for Mexico by Feliciano (2001) and Revenga (1997). The evidence is consistent with the predictions of short-to medium-run models of trade where labour is immobile across sectors, or alternatively, with the existence of industry rents that are shared with workers, but these rents are eroded through greater foreign competition subsequent to trade reform.…”

Section: Trade Reform and Industry Wage Premiumssupporting

confidence: 81%

Short-term Consequences of Trade Reform for Industry Employment and Wages: Survey of Evidence from Colombia

Goldberg

Pavcnik

2005

World Economy

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Recent research has focused on the short‐ to medium‐term implications of trade reforms for the labour market outcomes and poverty in poor economies. This article summarises the evidence on the short‐term consequences of the Colombian trade reform initiated in 1985 for industry employment and industry wages. Although the reform reduced manufacturing tariffs on average by 40 percentage points from 1984 to 1994, tariff declines were not significantly associated with labour reallocation across sectors. The reform, however, was associated with bigger declines in relative industry wages in sectors that experienced bigger tariff cuts. This evidence is in line with the predictions of short‐ to medium‐run models of trade in which labour is not mobile across sectors. It is also consistent with the predictions of models where imperfectly competitive industries share rents with workers and trade reduces the firms’ profit margins and thus workers’ rents.

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Section: Trade Reform and Industry Wage Premiumssupporting

confidence: 81%

Short-term Consequences of Trade Reform for Industry Employment and Wages: Survey of Evidence from Colombia

Goldberg

Pavcnik

2005

World Economy

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“…Feenstra and Hanson (1996Hanson ( , 1997 argued that the capital flows from North to South with outsourcing by Northern multinationals contributed to an increase in the relative demand for skilled labor raising the wage inequality in both the sending and the recipient countries. Trade liberalization in Mexico (Feliciano, 2001;Hanson and Harrison, 1999) and outsourcing in Hong Kong (Hsieh and Woo, 2005) led to decreased prices in low-skilled industries relative to the prices in the skill-intensive industries, increasing wage inequality. This review shows that a combination of liberalizing and outsourcing trade and technology change can account for the shift in wages towards skilled labor and increased wage inequality.…”

Section: Digression On Rising Within-group Wage Inequalitymentioning

confidence: 99%

Wage Inequality and Returns to Education in Turkey: A Quantile Regression Analysis

Tansel

Bodur

2012

Review Development Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract: This paper investigates the male wage inequality and its evolution over the 1994-2002 period in Turkey by estimating Mincerian wage equations using OLS and quantile regression techniques. Male wage inequality is high in Turkey. While it declined at the lower end of the wage distribution it increased at the top end of wage distribution. Education contributed to higher wage inequality through both within and between dimensions. The within-groups inequality increased and between-groups inequality decreased over the study period. The latter factor may have dominated the former contributing to the observed decline in the male wage inequality over the 1994-2002. Further results are provided for the wage effects of experience, cohort effects, public sector employment, geographic location, firm size, industry of employment and their contribution to wage inequality. Recent increases in FDI inflows, openness to trade and global technological developments are discussed as contributing factors to the recent rising within-groups wage inequality. Terms of use: Documents in

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“…Unlike the evidence found in the USA and several advanced economies, the patterns of wage movements are different in developing countries. Feliciano (1993), Hanson and Harrison (1995), and Feenstra and Hanson (1997) found an increase in wage inequality in Mexico over the period 1986-1990. Robbins (1994 also reported a similar trend in Chile during the 1980s.…”

Section: Introductionmentioning

confidence: 95%

Wage Differentials in Taiwanese Manufacturing, 1982–1997

Tsou

2002

Asian Economic Journal

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The present paper examines the impacts of technological change and trade flows on wage inequality across manufacturing industries. Using micro-level data from the Taiwan Manpower Utilization Survey (TMUS), 1982-1997, a slight decline in the log-wage differential between college and high-school workers is detected during this period. These results indicate that the accelerated growth in the relative supply of college graduates, combined with steady demand growth in favor of more highly educated workers, can largely explain the narrowing wage differentials within Taiwanese manufacturing over the period 1982-1997. In terms of demand-side factors, this study concludes that technology and trade are the two major forces driving the differences in wage inequality across industries.

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Workers and Trade Liberalization: The Impact of Trade Reforms in Mexico on Wages and Employment

Cited by 125 publications

References 0 publications

Short-term Consequences of Trade Reform for Industry Employment and Wages: Survey of Evidence from Colombia

Short-term Consequences of Trade Reform for Industry Employment and Wages: Survey of Evidence from Colombia

Wage Inequality and Returns to Education in Turkey: A Quantile Regression Analysis

Wage Differentials in Taiwanese Manufacturing, 1982–1997

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