Abstract

http://ssrn.com/abstract=1423329
 
 

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The Role of 'Skill Enhancing Trade' in Brazil: Some Evidence from Microdata


Bruno Araujo


Institute of Applied Economic Research (IPEA)

Francesco Bogliacino


National University of Colombia

Marco Vivarelli


SPRU-University of Sussex; Universita Cattolica del Sacro Cuore, Piacenza; Institute for the Study of Labor (IZA); Centre for the Study of Globalisation and Regionalisation (CSGR)


IZA Discussion Paper No. 4213

Abstract:     
Brazil was characterised by a marked process of trade liberalisation in the 1990s, resulting in a dramatic increase in the volumes of exports and imports since the year 2000. Over the same period, the relative demand for skilled labour has increased substantially. To investigate whether these two simultaneous phenomena are linked is the purpose of this paper. More in particular, this study focuses on the impact of trade openness and technology transfer on the relative demand for skilled labour in Brazilian manufacturing firms, using a unique panel database (resulting from merging three different statistical sources) of Brazilian manufacturing firms over the period 1997-2005. Descriptive statistics show that the increase in the relative demand for skilled labour was mainly driven by the within-industry variation, supporting the hypothesis that technology (and in particular technological transfer from richer countries) may have played a role in determining the skill-upgrading of Brazilian manufacturing firms. The econometric results further support this hypothesis. Indeed, the estimations show that domestic capital is a complement of the skilled workers and that imported capital goods clearly act as a skill-enhancing component of trade. Hence, our results support the view that embodied technological change through the importation of capital goods has involved a clear skill-biased impact in Brazilian manufacturing.

Number of Pages in PDF File: 24

Keywords: skill-enhancing trade, skill-bias, panel data, Brazil

JEL Classification: O33, O54, F16

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Date posted: June 21, 2009  

Suggested Citation

Araujo, Bruno and Bogliacino, Francesco and Vivarelli, Marco, The Role of 'Skill Enhancing Trade' in Brazil: Some Evidence from Microdata. IZA Discussion Paper No. 4213. Available at SSRN: http://ssrn.com/abstract=1423329

Contact Information

Bruno Araujo (Contact Author)
Institute of Applied Economic Research (IPEA) ( email )
Av. Pres. Antonio Carlos , 51 - 17 andar
Rio de Janeiro, RJ, 20020-010
Brazil
Francesco Bogliacino
National University of Colombia ( email )
Carrera 30 45-03
Bogota, None
Colombia
Marco Vivarelli
SPRU-University of Sussex ( email )
Falmer
Brighton, Sussex BNI 9RH
United Kingdom
Universita Cattolica del Sacro Cuore, Piacenza ( email )
Via Emilia Parmense, 84
Piacenza
Italy
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
Centre for the Study of Globalisation and Regionalisation (CSGR) ( email )
Coventry CV4 7AL
United Kingdom
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