The Impact of Trade Liberalization on Wage Inequality: Evidence from Argentina

23 Pages Posted: 27 Dec 2013

See all articles by Sebastian Galiani

Sebastian Galiani

University of Maryland - Department of Economics

Pablo Sanguinetti

Universidad Torcuato Di Tella

Date Written: April 28, 2003

Abstract

Wage inequality in Argentina greatly increased during the nineties. During this period, a rapid and deep process of trade liberalization was implemented. In this paper we study whether trade liberalization played any role in shaping the Argentine wage structure during the nineties. Specifically, we test whether those sectors where import penetration deepened are also the sectors where, ceteris paribus, a higher increase in wage inequality is observed. Even though we find some evidence that supports this hypothesis, as has been found for some developed economies, trade deepening can only explain a relatively small proportion of the observed rise in wage inequality.

Keywords: Wage inequality, trade liberalization and Argentina

JEL Classification: F14, J31

Suggested Citation

Galiani, Sebastian and Sanguinetti, Pablo, The Impact of Trade Liberalization on Wage Inequality: Evidence from Argentina (April 28, 2003). Available at SSRN: https://ssrn.com/abstract=2372198 or http://dx.doi.org/10.2139/ssrn.2372198

Sebastian Galiani (Contact Author)

University of Maryland - Department of Economics ( email )

College Park, MD 20742
United States

Pablo Sanguinetti

Universidad Torcuato Di Tella

Minones 2159
1428 Buenos Aires, 1428
Argentina
(54 1) 784 0080/84 (Phone)
(54 1) 784 0089 (Fax)

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