• Selected
• Entire List

Abstract:
This paper uses a computable general equilibrium model to simulate different trade liberalization policy scenarios and counterfactual microsimulations to assess the impacts of greater trade openness on household income distribution and poverty ratios. Our conclusion is that trade liberalization alone may not be sufficient to significantly reduce poverty and inequality.

poverty, employment, income inequality, trade liberalization, CGE, counterfactual microsimulations

Abstract:
This paper uses a computable general equilibrium model to simulate different trade liberalization policy scenarios and counterfactual microsimulations to assess the impacts of greater trade openness on household income distribution and poverty ratios. Our conclusion is that trade liberalization alone may not be sufficient to significantly reduce poverty and inequality.

poverty, employment, income inequality, trade iberalization, CGE, counterfactual microsimulations

Abstract:
This paper analyzes the effect of unions on the labor market in Brazil and attempts to answer the following questions: How do labor laws and union legislation affect collective bargaining processes? Do unions influence wage formation and income distribution? Do unions increase labor market rigidity? We find evidence that institutions are fundamental in explaining the behavior of unions, their effects on income distribution and macroeconomic stability, and the current state of development of collective bargaining in Brazil. The paper concludes with some recommendations for enhancing the role of unions and collective bargaining processes.

Strategic default, Overinvestment, Debt contract, Monitoring costs

Abstract:
The aim of this paper is to present a review of the theoretical and empirical literature about the effects of trade liberalization on the labor markets of developing countries. We discuss models which seek to explain the empirical finding that openness has increased the wage inequality in several developing countries.

trade liberalization, technology, wages, employment, income distribution, developing countries

Abstract:
The aim of this paper is to present a review of the theoretical and empirical literature about the effects of trade liberalization on the labor markets of developing countries. We discuss models which seek to explain the empirical finding that openness has increased the wage inequality in several developing countries.

trade liberalization, technology, wages, employment, income distribution, developing countries

Abstract:
This paper investigates the impacts of greater trade openness on employment, poverty and inequality in Brazil. The empirical strategy is based on decomposition analysis exercises to assess the main determinants of current account deficits following trade liberalization as well as output decomposition into private sector demand, public sector expenditures and import substitution. Further to this aggregate analysis, we use a computable general equilibrium model to simulate different policy scenarios and use the results of this modeling approach to create counterfactual microsimulations and assess the impacts of greater trade openness on household income distribution and poverty ratios. Our conclusion is that trade liberalization alone will not be sufficient to significantly reduce poverty and inequality in Brazil.

Trade liberalization, poverty, inequality

Abstract:
This paper investigates the determinants of competitive advantage of a developing country's exporting firms. It brings at least two innovations. First, we employ an unprecedented database in the analysis of firms' international competitiveness. The database is the result of the compilation of micro-data of firms and their employees, exports, and capital ownership. Second, it investigates the importance of education, technology and scale of production as determinants of international competitiveness of firms from a developing country. The results show that these variables play an important role in explaining the international competitiveness of firms, and the limitation of explanations based solely on allocation and factor intensity as determinants of developing countries exports.

Export determinants, education; technology, gains of scale, developing countries, Brazil

Abstract:
This paper reviews the effects of trade liberalisation on wages in developing countries, and presents new evidence for Brazil. Wages fell substantially in the traded sector after trade liberalisation, consistent with there being reduced rents as industries faced greater competition. After trade liberalisation there was an increase in the marginal returns to college education. Within the traded sector, the impact of increasing openness on wages was insignificant for those in the top two education groups but negative for lower level education groups. These findings are consistent with the hypothesis that imported technology raised the relative demand for highly skilled labour.

trade liberalization, technology, returns to education, wages, employment, income distribution, developing countries

Abstract:
This paper reviews the effects of trade liberalisation on wages in developing countries, and presents new evidence for Brazil. Wages fell substantially in the traded sector after trade liberalisation, consistent with there being reduced rents as industries faced greater competition. After trade liberalisation there was an increase in the marginal returns to college education. Within the traded sector, the impact of increasing openness on wages was insignificant for those in the top two education groups but negative for lower level education groups. These findings are consistent with the hypothesis that imported technology raised the relative demand for highly skilled labour.

Abstract:
This paper first reviews theoretical and empirical studies of the effects of trade liberalisation on wages in developing countries. It then presents new evidence for the case of Brazil which experienced a period of rapid trade liberalisation at the beginning of the 1990s. Conditional on education and work experience, we find that wages fell substantially in the traded sector after trade liberalisation. This is consistent with there being reduced rents as industries faced greater competition. Conditional wages also fell, though by a smaller amount, in the non-traded sector, possibly reflecting spill-over effects. However, due to increasing education levels, there was little overall change in the average wage level for the whole economy.

Averaged over the whole post-liberalisation period, there was an increase in the marginal returns to college education. Within the traded sector, the impact of increasing openness on wages was insignificant for those in the top two education groups, but negative for lower level education groups. These findings are consistent with the hypothesis that, following trade liberalisation, imported technology raises the relative demand for highly skilled labour.

trade liberalisation, technology, wages, employment, income distribution, developing countries, returns to education, Brazil

Abstract:
This paper investigates the impact of FDI on the labor market in Brazil. We raise some empirical evidence for three questions: (i) Are foreign companies more skill-intensive than national companies?; (ii) Do they affect the wage formation?; (iii) Does FDI impact human capital formation? We find that foreign firms are more skill-intensive than national firms by employing better educated and more experienced workers; that multinationals pay a wage premium; and that FDI impacts human capital formation. These findings suggest that there are spill-over effects of foreign capital on the labor market.

FDI, human capital, technology, Brazil

Abstract:
The paper assesses the impacts of trade liberalization on macroeconomic variables and labor market indicators for the case of Brazil. The motivation is based on earlier debate on the role of trade liberalization in shaping out labor market outcomes in the well known Hecksher-Ohlin and Stolper-Samuelson (HOS) theorems. Countries that have adopted outer-oriented development strategies are reported to have reached higher rates of growth as compared to countries that have adopted the import substitution strategy [Krueger (1983), (1988)]. To address these issues for the case of Brazil, we use a computable general equilibrium (CGE) modeling approach to model the patterns of export growth by sector and their effects on macroeconomic and labor market indicators. The CGE modeling strategy allows for the investigation of inter-industry and employment linkages from export growth in particular sectors, productivity shocks, and export demand shocks. This methodology has been applied for a number of countries with different purposes and can offer a rich base of empirical simulations for analyzing quantitatively the effects of economic policies and external shocks on the domestic economy [Robinson et al. (1999)]. Overall our results have shown that trade liberalization contributes to improve economic welfare by means of greater output, lower domestic prices, and higher labor demand, but that the benefits of this economic improvement tend be appropriated by the most skilled workers in the most trade-oriented sectors, what is against the predictions of the HOS theorems.

trade, wages, employment, inequality

Abstract:
Sub-Saharan Africa has grown at record figures since the mid-1990s, generating optimism that the continent has finally turned the corner on the path to sustained growth. But growth has been largely driven by high international demand for commodities in general, and hydrocarbons and other minerals in particular, and it is unclear how the region will cope if and when the global demand for raw materials slows down. To answer this question we first investigate whether growth has accelerated since 1995, and second whether the economic fundamentals that drive long run growth have improved during the acceleration. We use the methodology developed by Arbache and Page (2007a) and find evidence that Africa has indeed been experiencing record growth acceleration since 1995. But we find that in general growth accelerations have not been accompanied by improved economic fundamentals such as investment rates, current accounts, fiscal accounts, and inflation, thus suggesting that so far there is little indication that the region is experiencing a robust growth period.

growth robustness, economic fundamentals, Sub-Saharan Africa

Abstract:
This paper investigates the wage determination and wage differentials in Brazil for the 1980s and 1990s. We test several competitive models ant theories of segmentation explained by efficiency wages. We find that unmeasured abilities and efficiency wages play a role in explaining the wage determination in Brazil, and that both models gain importance in the 1990s. Transitory difference and compensating differentials do not seem to explain wage formation and wage differentials in Brazil.

wage determination, wage differentials, Brazil

Abstract:
This paper investigates the wage determination and wage differentials in Brazil for the 1980s and 1990s. We test several competitive models ant theories of segmentation explained by efficiency wages. We find that unmeasured abilities and efficiency wages play a role in explaining the wage determination in Brazil, and that both models gain importance in the 1990s. Transitory difference and compensating differentials do not seem to explain wage formation and wage differentials in Brazil.

wage determination, wage differentials, Brazil

Abstract:
This paper investigates whether the growth of cell telephony in Brazil after privatization is taking place at the expense of the fixed telephony. We use national household surveys and find that first, despite the rapid growth in cell telephony, complementarity between both types of telephony is still dominant at the household level; second, phone subscription is strongly determined by income, demographic and regional characteristics; and third, cell telephony plays a substitutive role with respect to fixed telephony in rural areas, but a complementary one in urban areas.

fixed telephony, cell telephony, substitute, complementary, Brazil

Abstract:
In the last twenty years, Brazil has experienced several attempts of improving sustainable growth through stabilization programs, and more recently, structural reforms in line with the Washington Consensus Agenda. The results, however, have been disappointing, as the per capita output growth has remained below its historic trend, and poverty and inequality remain at high levels. This paper investigates why market-oriented reforms such as trade and capital account liberalization, privatization, deregulation and stabilization failed to boost growth in Brazil. We conclude that structural reforms may contribute to growth if accompanied by microeconomic policies tailor-made to the country's needs, and by appropriate macroeconomic, institutional and political environments.

Structural reforms, policy coordination, fiscal policy, stabilization, trade liberalization, political economy, Brazil

Abstract:
This paper formulates a positive association between total factor productivity and external effects of human capital. It interprets that exogenous technical changes - as a result from the removal of barriers for trade and technology diffusion and other policy or institutional reforms - enhance the external effects of human capital. In a variant of Lucas' (1988) model with exogenous productivity growth, it is shown that higher external effects would mean higher wage and growth rates. An empirical illustration using inter-industry wage premium reveals some significant evidence in favour of the hypotheses of external effects of human capital and, above all, of enhanced external effects when there are positive technical changes. The paper contributes to the understanding of both macro and micro aspects of external effects, particularly in regard to the roles of human capital in augmenting the benefits of technological diffusion, namely in terms of productivity growth.

human capital, external effects, technical change, TFP, endogenous growth, openness

Abstract:
This article investigates whether the trade liberalization introduced in Brazil by the end of the 1980s affected the structure of employment and wage. We use data from the manufacturing sector from 1987 to 1998 and found evidences that the higher trade flow affected the inter-industry employment shares and wage premia. We also found that skilled and unskilled workers were differently affected by trade liberalization.

Abstract:
This paper reviews the recent economic policies in Brazil and their impacts on the poor, and examines macro policies required to allow for poverty reduction. We first present the economic policies of the following periods and their impacts on growth and on the poor: 1980-1989, 1990-2002, and 2003-2004. The split between the first and second periods is due to the major break of policy orientation from 1990 onwards. The last period seeks to examine whether the economic policy of President Lula da Silva is favoring the poor as compared to his predecessors. Then we discuss macroeconomic policy alternatives that can lead Brazil towards a faster and more equitable growth and rapid poverty reduction. We conclude presenting the lessons drawn from the Brazil's case.

economic growth, economic reforms, poverty, income distribution, pro-poor macroeconomics, Brazil

Abstract:
This article investigates gender wage discrimination based on a natural experiment, namely, the introduction of compulsory open exams applied in Brazil to public service job candidates as a way to prevent clientelism and nepotism. Our hypothesis is that if there is discrimination, so we should observe gender wage gap reduction after the introduction of the open exams. We find evidence in favor of this hypothesis, thus suggesting that there is discrimination against women.

Discrimination, gender, public service, natural experiment.

Abstract:
This paper investigates whether technological innovation and exports affect the size and productivity of manufacturing firms in Brazil. In order to do so, we employ a new dataset and try to control for self-selection, a problem that is particularly important for the issue under examination. Regression analyses show a positive relation among innovation, exports, and size and productivity, while causality exercises show that innovation and exports imply higher productivity and higher firm sizes. Our results suggest that policies aimed at improving technology and innovation, and internationalization of firms are good for the firms' competitiveness and, therefore, the economy's competitiveness.

Technology, innovation, R&D, exports, competitiveness, size, productivity, firm, Brazil

Abstract:
In this paper, Arbache, Go, and Page examine the recent acceleration of growth in Africa. Unlike the past, the performance is now registered broadly across several types of countries-particularly the oil-exporting and resource-intensive countries and, in more recent years, the large- and middle-income economies, as well as coastal and low-income countries. The analysis confirms a trend break in the mid-1990s, identifying a growth acceleration that is due not only to favorable terms of trade and greater aid, but also to better policy. Indeed, the growth diagnostics show that more and more African countries have been able to avoid mistakes with better macropolicy, better governance, and fewer conflicts; as a result, the likelihood of growth decelerations has declined significantly. Nonetheless, the sustainability of that growth is fragile, because economic fundamentals, such as savings, investment, productivity, and export diversification, remain stagnant. The good news in the story is that African economies appear to have learned how to avoid the mistakes that led to the frequent growth collapses between 1975 and 1995. The bad news is that much less is known about the recipes for long-term success in development, such as developing the right institutions and the policies to raise savings and diversify exports, than about how to avoid economic bad times.

Growth diagnostics, growth robustness, economic policy, Africa

Abstract:
The theoretical and empirical literature shows that union wages are more responsive to international import competition than nonunion wages, thus, reducing unions bargaining power. In this paper, we track the influence of unions on wages in Brazil before and after the trade liberalization in the beginning of the 1990s. We find that union bargaining power increased rather than decreased after economic openness. Our results seem to be related to the bargaining framework prevailing in the Brazilian labor market.

Union, trade liberalization, wage structure, wage dispersion, Brazil

Abstract:
This paper investigates the impact of trade liberalization on gender wage discrimination. We employ a simple method that is able to capture the direct impacts of openness at the industry level on the gender wages. We find evidence that increasing openness is associated with narrowing wage gap, which results mainly from men's wages declining. This is consistent with the Becker's (1957) proposition that competition reduces discrimination in the labor market.

Gender, discrimination, labor market, competition, trade liberalization

Abstract:
This paper offers some notes on the relationship between the Mercosur and the labor market. In particular, we examine the domestic labor legislations and the regional trade, and the impacts of Mercosur on the labor markets. We raise some hypotheses to explain the simulation results that suggest that the impacts of Mercosur on the labor markets are modest.

Free trade, trade agreement, labor market, Mercosur

Abstract:
This paper reviews the debate about the impacts of commercial liberalization on labor markets in Brazil. It briefly presents the main theoretical issues involved in the debate, identifies the main facts observed in the 1990/99 period, raises what we consider to be the main questions and the answers given by the literature and finally suggests future directions of research.

Abstract:
Using the most recent purchasing power parity data for 44 sub-Saharan African countries, this paper examines the characteristics of long run growth in Africa between 1975 and 2005. We investigate the following issues: cross-country income structure, income convergence, the country level distribution of income, growth and income persistence, and formation of convergence clubs.

GDP per capita, Growth, Sub-Saharan Africa

Abstract:
We assess the stability of the wage structure in an economy experiencing substantial economic changes. We find that the structure of inter-industry wage differentials remained remarkably stable in Brazil in the face of major shocks.

wage structure, wage stability, inter-industry wage differentials, Brazil

Abstract:
We assess the stability of the wage structure in an economy experiencing substantial economic changes. We find that the structure of inter-industry wage differentials remained remarkably stable in Brazil in the face of major shocks.

wage structure, inter-industry wage differentials, Brazil

Abstract:
This paper examines the country-level dynamics of long-run growth in Africa between 1975 and 2005. We are primarily interested in examining how growth has affected mobility and the distribution of income among countries. We analyze changes in the cross-country income structure and convergence. We also look for evidence of the formation of country groups or "clubs". Finally, we use a novel method of breaking up the growth histories of African economies into medium term spells of growth accelerations and declines to see if a group of African "leopards" - the regional equivalent of Asia's "tigers" - is beginning to emerge.

GDP per capita, Growth, Sub-Saharan Africa

Abstract:
This paper investigates the inter-industry wage differentials in Brazil. We examine the impacts of industry affiliation at the three-digit level, and control our regressions with firm variables such as plant size, nationality of capital, and international trade, among several other labor variables. Therefore, we could access the impact of industry affiliation on wages taking into account supply and demand characteristics. We found evidence that value added, profits and technology at the industry level affect the wage dispersion in Brazil.

Inter-industry wage differential, wage determination, Brazil