Agro-Manufactured Export Prices, Wages and Unemployment

Posted: 17 Jun 2008

See all articles by Guido G. Porto

Guido G. Porto

Universidad Nacional de La Plata - Faculty of Economics

Abstract

This article estimates the impacts of world agricultural trade liberalization on wages and unemployment in Argentina in the presence of individual labor supply responses and adjustment costs in labor demand. After a 10% increase in agro-manufactured export prices, I find that: (a) the employment probability would increase by 1.36 percentage points, matched by a decline in the unemployment probability of 0.75 percentage points and an increase in labor market participation of 0.61 percentage points; (b) the unemployment rate would decline by 1.23 percentage points; (c) expected wages would increase by 10.3%, mostly due to higher employment probabilities.

Suggested Citation

Porto, Guido G., Agro-Manufactured Export Prices, Wages and Unemployment. American Journal of Agricultural Economics, Vol. 90, No. 3, pp. 748-764, August 2008, Available at SSRN: https://ssrn.com/abstract=1146673 or http://dx.doi.org/10.1111/j.1467-8276.2007.01129.x

Guido G. Porto (Contact Author)

Universidad Nacional de La Plata - Faculty of Economics ( email )

1900 La Plata
Argentina

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