Does openness reduce wage inequality in developing countries? A panel data analysis
AbstractThis paper provides panel data evidence on trade liberalization and wage inequality in Bangladesh. Using several standard econometric models, wage equations for skilled and unskilled workers in the formal manufacturing sector are estimated for the 1975-2002 period. The results, particularly the estimates from a dynamic fixed effects model, provide some weak evidence that openness contributes to a reduction in wage inequality between skilled and unskilled workers. The results also indicate that real wages of both unskilled and skilled workers increased during the period.
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Bibliographic InfoPaper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 241.
Length: 26 pages
Date of creation: 14 Dec 2006
Date of revision: 06 Feb 2008
Contact details of provider:
Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
More information through EDIRC
Bangladesh; openness; wage inequality; panel data; panel unit root; dynamic model;
Find related papers by JEL classification:
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F15 - International Economics - - Trade - - - Economic Integration
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-01-02 (All new papers)
- NEP-DEV-2007-01-02 (Development)
- NEP-LAB-2007-01-02 (Labour Economics)
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