Trade reforms and industry wage premium: evidence from Argentina
This paper studies the impact of Argentina trade liberalization during the nineties on the industry wage premium structure. We find that accounting for unobserved time-invariant industry characteristics is crucial. When we do not control for industry fixed effects, we find that workers in protected...
Guardado en:
| Autores principales: | , |
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| Formato: | Objeto de conferencia |
| Lenguaje: | Inglés |
| Publicado: |
2016
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| Materias: | |
| Acceso en línea: | http://sedici.unlp.edu.ar/handle/10915/170437 |
| Aporte de: |
| Sumario: | This paper studies the impact of Argentina trade liberalization during the nineties on the industry wage premium structure. We find that accounting for unobserved time-invariant industry characteristics is crucial. When we do not control for industry fixed effects, we find that workers in protected sectors receive lower wages. However, introducing industry fixed effects reverses the results; protection creates sector specific rents that are partly translated to workers in terms of greater wages. Since Argentina’s tariff structure during this period protected relatively more high-skilled sectors, we conclude that nineties trade policy had an adverse effect on Argentina’s income distribution. |
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