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Evidence on Trade and Wages in the Developing World

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Donald J. Robbins ()
Abstract

This paper synthesizes nine in-depth developing country (LDC) studies on the impact of trade upon wages. It is traditionally assumed that in LDCs trade liberalization lowers relative wage dispersion, while raising wage dispersion in DCs. Evidence from cross-sectional household data for Argentina, Chile, Costa Rica, Colombia, Malaysia, Mexico, the Philippines, Chinese Taipei and Uruguay show: first, counter to one model in Leamer (1995), for countries with diversified trade, labor supply shifts generally shift wages. Second, liberalization was accompanied by rising relative wages and labor demand. And third, trade liberalization often increases the inflow of machinery, and may partly explain positive relative demand shifts accompanying trade liberalization ...


Ce document est une synthèse de neuf études approfondies portant sur l’impact des échanges sur les salaires dans les pays en développement. Il est couramment admis que la libéralisation des échanges réduit la dispersion relative des salaires dans les pays en développement, alors qu’elle l’accentue dans les pays développés. Les données sur les revenus des différentes catégories de ménages disponibles pour l’Argentine, le Chili, la Costa Rica, la Colombie, la Malaisie, le Mexique, les Philippines, le Taipei chinois et l’Uruguay montrent que : tout d’abord, contrairement au modèle de Leamer (1995), dans les pays dont les échanges sont diversifiés, tout changement dans la répartition de l’offre de travail va de pair avec un ajustement des salaires ; ensuite, la libéralisation a entraîné une hausse des salaires relatifs et de la demande de main-d’oeuvre ; et enfin, la libéralisation des échanges provoque souvent une augmentation des achats de matériel, ce qui explique en partie ...

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Paper provided by OECD Development Centre in its series OECD Development Centre Working Papers with number 119.

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Date of creation: Dec 1996
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Handle: RePEc:oec:devaaa:119-en

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  1. Fajnzylber, Pablo & Maloney, William F., 2000. "Labor demand and trade reform in Latin America," Policy Research Working Paper Series 2491, The World Bank. [Downloadable!]
    Other versions:
  2. Asep Suryahadi, 2001. "International Economic Integration and Labor Markets: The Case of Indonesia," Economics Study Area Working Papers 22, East-West Center, Economics Study Area. [Downloadable!]
  3. Albert Berry & John Serieux, 2006. "Riding the Elephants: The Evolution of World Economic Growth and Income Distribution at the End of the Twentieth Century (1980-2000)," Working Papers 27, United Nations, Department of Economics and Social Affairs. [Downloadable!]
  4. Sakellariou, Chris N. & Patrinos, Harry A., 2003. "Technology, computers, and wages : evidence from a developing economy," Policy Research Working Paper Series 3008, The World Bank. [Downloadable!]
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  5. K. H. O'Rourke, 2001. "Globalization and Inequality: Historical Trends," CEG Working Papers 20015, Trinity College Dublin, Department of Economics. [Downloadable!]
    Other versions:
  6. Pavcnik, Nina & Blom, Andreas & Goldberg, Pinelopi & Schady, Norbert, 2003. "Trade liberalization and labor market adjustment in Brazil," Policy Research Working Paper Series 2982, The World Bank. [Downloadable!]
  7. Naoko Shinkai, 2000. "¿Explica el teorema Stopler-Samuelson el desplazamiento de los salarios? El vínculo entre el comercio internacional y los salarios en países latinoamericanos," RES Working Papers 4238, Inter-American Development Bank, Research Department. [Downloadable!]
  8. Attanasio, Orazio & Goldberg, Pinelopi & Pavcnik, Nina, 2003. "Trade Reforms and Wage Inequality in Colombia," CEPR Discussion Papers 4023, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  9. Goldberg, Pinelopi Koujianou & Pavcnik, Nina, 2003. "Trade, Wages and the Political Economy of Trade Protection: Evidence from the Colombian Trade Reforms," CEPR Discussion Papers 3877, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  10. Suryahadi, A. & Chen, P. & Tyers, R., 1999. "Openness, Technological Change and Labor Demand in Pre-Crisis Indonesia," ANUCBE School of Economics Working Papers 1999-377, Australian National University, College of Business and Economics, School of Economics. [Downloadable!]
    Other versions:
  11. James R. Markusen, 1997. "Trade versus Investment Liberalization," NBER Working Papers 6231, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  12. Sanchez Cantillo, M.V., 2001. "Trade reform and comparative advantage: expectations for Costa Rica's agricultural development," Working Papers - General Series 346, Institute of Social Studies. [Downloadable!]
  13. François Bourguignon & Sylvie Lambert & Akiko suwa-Eisenmann, 2004. "Trade exposure and income volatility in cash-crop exporting developing countries," Research Unit Working Papers 0408, Laboratoire d'Economie Appliquee, INRA. [Downloadable!]
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  14. Naoko Shinkai, 2000. "Does the Stopler-Samuelson Theorem Explain the Movement in Wages? The Linkage Between Trade and Wages in Latin American Countries," RES Working Papers 4237, Inter-American Development Bank, Research Department. [Downloadable!]
  15. Pinelopi K. Goldberg & Nina Pavcnik, 2004. "Trade, Inequality, and Poverty: What Do We Know? Evidence from Recent Trade Liberalization Episodes in Developing Countries," NBER Working Papers 10593, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  16. Adrian Wood, 2002. "Globalization and wage inequalities: A synthesis of three theories," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 138(1), pages 54-82, March. [Downloadable!] (restricted)
  17. Pinelopi K. Goldberg & Nina Pavcnik, 2001. "Trade Protection and Wages: Evidence from the Colombian Trade Reforms," NBER Working Papers 8575, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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