Skill Premiums of Trading in International Markets and Equity: Some Lessons for Pro Poor Education Policies in Developing Countries
AbstractThe aim of this paper is to examine whether the human capital accumulation, that is a result of increased trade, further exacerbates industrial wage differentials. We find that level of education is one of the key determinants in explaining wage inequalities. Though countries which have a higher level of human capital do well on the inequality front, our results suggest that post liberalization human capital accumulation is associated with higher premiums to skilled labor thus increasing wage gaps. In this context, governments in developing countries may need to increase the mean level of human capital to achieve equity in labor markets.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 4319.
Date of creation: 01 Aug 2007
Date of revision:
Integration; Trade Liberalization; Wage Inequality;
Find related papers by JEL classification:
- J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
- I20 - Health, Education, and Welfare - - Education - - - General
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-08-08 (All new papers)
- NEP-HRM-2007-08-08 (Human Capital & Human Resource Management)
- NEP-INT-2007-08-08 (International Trade)
- NEP-LAB-2007-08-08 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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