Trade liberalization, employment flows, and wage inequality in Brazil

By Francisco H. G. Ferreira, P. Leite, M. Wai-Poi. 2007

117 citations recorded by the source corpus.

Using nationally representative, economywide data, this paper investigates the relative importance of trade-mandated effects on industry wage premia; industry and economywide skill premia; and employment flows in accounting for changes in the wage distribution in Brazil during the 1988-95 trade liberalization. Unlike in other Latin American countries, trade liberalization appears to have made a significant contribution toward a reduction in wage inequality. These effects have not occurred through changes in industry-specific (wage or skill) premia. Instead, they appear to have been channeled through substantial employment flows across sectors and formality categories. Changes in the economywide skill premium are also important.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/2bbd3415ea008ba0ac64b10d7d88be8b9ebda42a

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In Economics and Econometrics

Citations in the corpus

Poverty Reduction without Economic Growth? Explaining Brazil's Poverty Dynamics, 1985-2004 (2007, background): “Gonzaga et al. (2006) and Ferreira et al. (2007) analyze its impact on skill differentials and wage Cardoso Jr. (2000, p.21). ed total, the share of social assistance was only around 4.5-5.5% between 2000 inequality.”
Trade and Inequality: From Theory to Estimation (2012, unknown): “In contrast, the focus of our (2004), Ferreira, Leite, and Wai-Poi (2010), Goldberg and Pavcnik (2005), Gonzaga, Menezes-Filho, and Terra (2006), and Menezes-Filho, Muendler, and Ramey (2008).”
Firms and the Decline in Earnings Inequality in Brazil (2017, unknown): “The opening up to trade over the last 25 years has been frequently cited as a major contributor to the country’s growth in total factor productivity (Ferreira and Rossi, 2003; Ferreira et al., 2007; Moreira, 2004; Muendler, 2004; Córdova and Moreira, 2003).”
Declining inequality in Latin America in the 2000s: the cases of Argentina, Brazil, and Mexico (2012, result): “In sum, Gasparini and Cruces conclude that underlying the recent decline in inequality in Argentina are the petering out of the effect of technological upgrading coupled with strong, labor-intensive growth. Market forces have been complemented with state action. A pro-union and pro-disenfranchised g”