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Trade Liberalization and the Relative Wages for More-Skilled Workers in Costa Rica

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Author Info
Robbins, Donald
Gindling, T H

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Abstract

A prominent argument regarding the effects of trade liberalization on the dispersion of wages in LDCs is that trade liberalization should lower the relative demand for more-skilled workers by inducing between-sector shifts towards sectors intensive in unskilled labor. Based on a disaggregating, nonparametric approach that imposes little structure on the data, the paper presents evidence that trade liberalization in Costa Rica led to an increase in relative demand. Other findings are consistent with the "skill-enhancing-trade hypothesis," whereby trade liberalization induces an acceleration of physical capital imports, which raises relative demand through capital-skill complimentarily. Copyright 1999 by Blackwell Publishing Ltd

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Publisher Info
Article provided by Blackwell Publishing in its journal Review of Development Economics.

Volume (Year): 3 (1999)
Issue (Month): 2 (June)
Pages: 140-54
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Handle: RePEc:bla:rdevec:v:3:y:1999:i:2:p:140-54

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  2. Elena Meschi & Marco Vivarelli, 2007. "Globalization and Income Inequality," IZA Discussion Papers 2958, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Takeho Nakamura, 2007. "Wage inequality and welfare effects of domestic technological progress: a dual economy approach," Economics Bulletin, Economics Bulletin, vol. 15(22), pages 1-14. [Downloadable!]
  4. Richard B. Freeman, 2003. "Trade Wars: The Exaggerated Impact of Trade in Economic Debate," NBER Working Papers 10000, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Francis Green & Andy Dickerson & Jorge Saba Arbache, 2000. "A Picture of Wage Inequality and the Allocation of Labour Through a Period of Trade Liberalisation: The Case of Brazil," Studies in Economics 0013, Department of Economics, University of Kent. [Downloadable!]
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  6. Bittencourt, Mauricio & Larson, Donald & Kraybill, David, 2005. "Regional Short Run Effects of Trade Liberalization in Brazil," 2005 Annual meeting, July 24-27, Providence, RI 19132, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  7. Rana Hasan & Lan Chen, 2003. "Trade and Workers: Evidence from the Philippines," Economics Study Area Working Papers 61, East-West Center, Economics Study Area. [Downloadable!]
  8. Oostendorp, Remco, 2004. "Globalization and the gender wage gap," Policy Research Working Paper Series 3256, The World Bank. [Downloadable!]
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  9. Martin Rama, 2002. "Globalization and Workers in Developing Countries," Economics Study Area Working Papers 41, East-West Center, Economics Study Area. [Downloadable!]
  10. Khan, haider, 2008. "Analyzing Poverty Impact of Trade Liberalization Policies in CGE Models: Theory and Some Policy Experiments in Agricultural and Non-agricultural Sectors in South Asia," MPRA Paper 7609, University Library of Munich, Germany, revised Mar 2008. [Downloadable!]
  11. Andy Dickerson & Francis Green & Jorge Saba Arbache, 2001. "Trade Liberalization and the Returns to Education: A Pseudo-panel Approach," Studies in Economics 0114, Department of Economics, University of Kent. [Downloadable!]
  12. Blom, Andreas & Holm-Nielsen, Lauritz & Verner, Dorte, 2001. "Education, earnings, and inequality in Brazil, 1982-98 - implications for education policy," Policy Research Working Paper Series 2686, The World Bank. [Downloadable!]
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  14. repec:dia:wpaper:dt200711 is not listed on IDEAS
  15. Jörg MAYER, 2000. "Globalization, Technology Tranfer And Skill Accumulation In Low-Income Countries," UNCTAD Discussion Papers 150, United Nations Conference on Trade and Development. [Downloadable!]
  16. T. H. Gindling & Juan Diego Trejos, 2003. "Accounting for Changing Inequality in Costa Rica, 1980-1999," UMBC Economics Department Working Papers 03-108, UMBC Department of Economics. [Downloadable!]
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