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Trade Liberalization and the Demand for Skilled Labor in Brazil

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  • Naercio Menezes Filho

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  • Naercio Menezes Filho

Abstract

This paper examines the relationship between trade liberalization and the evolution of the demand for skill in Brazil during the past decade. We use matched employer-employee panel data to test the hypothesis that the reduction in input tariffs made it easier for Brazilian firms to acquire technologically advanced inputs from abroad, which raised the demand for skilled labor. We find that input tariffs have a negative effect on skill upgrading and that this effect is stronger in firms that use inputs that are complements with skilled labor.

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File URL: http://www.brookings.edu/press/Journals/2007/economiafall2006.aspx
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Bibliographic Info

Article provided by LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION in its journal JOURNAL OF LACEA ECONOMIA.

Volume (Year): (2006)
Issue (Month): ()
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Handle: RePEc:col:000425:008648

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Related research

Keywords: Relative demand for skills; economic opening; technological advances;

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Cited by:
  1. Amiti, Mary & Cameron, Lisa, 2012. "Trade Liberalization and the Wage Skill Premium: Evidence from Indonesia," Journal of International Economics, Elsevier, vol. 87(2), pages 277-287.
  2. Vivarelli, Marco, 2012. "Innovation, Employment and Skills in Advanced and Developing Countries: A Survey of the Literature," IZA Discussion Papers 6291, Institute for the Study of Labor (IZA).
  3. Ernesto Friedrich de Lima Amaral & Joseph E. Potter & Daniel Hamermesh & Eduardo Rios-Neto, 2013. "Age, education, and earnings in the course of Brazilian development: Does composition matter?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 28(20), pages 581-612, March.
  4. Rosario Crinò, 2011. "Imported Inputs and Skill Upgrading," Development Working Papers 323, Centro Studi Luca d\'Agliano, University of Milano, revised 27 Dec 2011.

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