Trade Liberalisation and Wages in Developing Countries

24 Pages Posted: 11 Apr 2004

See all articles by Jorge Arbache

Jorge Arbache

University of Brasilia - Department of Economics

Andrew P. Dickerson

University of Warwick - Institute for Employment Research (IER)

Francis Green

University of Kent - Department of Economics

Multiple version iconThere are 3 versions of this paper

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.

Suggested Citation

Arbache, Jorge and Dickerson, Andrew P. and Green, Francis, Trade Liberalisation and Wages in Developing Countries. Economic Journal, Vol. 114, pp. F73-F96, February 2004. Available at SSRN: https://ssrn.com/abstract=513477

Jorge Arbache (Contact Author)

University of Brasilia - Department of Economics ( email )

Campus Universitário Darcy Ribeiro
Asa Norte
Brasília, Distrito Federal 70910-900
Brazil
+ 55 61 8194 4529 (Phone)

Andrew P. Dickerson

University of Warwick - Institute for Employment Research (IER) ( email )

Coventry CV4 7AL
United Kingdom

Francis Green

University of Kent - Department of Economics ( email )

Keynes College
Kent, CT2 7NP
United Kingdom

HOME PAGE: http://www.kent.ac.uk/economics/staff/gfg/

Register to save articles to
your library

Register

Paper statistics

Downloads
20
Abstract Views
1,149
PlumX Metrics