The survey aims to review the empirical literature about the impacts of trade liberalization on the labor markets of developed and developing countries, with a special emphasis on the Brazilian case. A general result is the change in the structure of the labor demand in favor of skilled workers. It is also observed that in developing countries trade liberalization leads to different effects on the labor market mainly due to the fact that the trade liberalization was not the sole change faced by this economies. Thus, a test on the complementarity between the theory of trade, theory of technological diffusion and foreign direct investment is suggested in order to explain the changes in the Brazilian labor market.
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Length: 24 pages Date of creation: Aug 2002 Date of revision: Publication status: Published in Revista Econômica do Nordeste, 2002, vol. 33, no. 3, pp. 615-631. Handle: RePEc:cdp:texdis:td177
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