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Trade Protection and Inter-industry Wages in India

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Author Info
Puja Vasudeva Dutta () (National Council of Applied Economic Research, New Delhi)

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Abstract

Using a unique database of individual data and industry-level tariff rates and other industry characteristics, this paper examines the link between trade protection and inter-industry wage premia in India during a period of rapid trade liberalisation. These premia represent differentials solely due to the industry affiliation of the worker after controlling for other worker characteristics. This paper finds that the impact of protection on the inter-industry wage premia is substantially positive - workers employed in industries with high tariffs receive higher wages than apparently identical workers in low tariff industries. This positive tariff-wage effect is evident whether or not industry specific effects are included and is consistent with the Ricardo-Viner trade model.

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Publisher Info
Paper provided by Poverty Research Unit at Sussex, University of Sussex in its series PRUS Working Papers with number 27.

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Length: 40 pages
Date of creation: Sep 2004
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Handle: RePEc:pru:wpaper:27

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Related research
Keywords: India inter-industry wages trade reforms

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Find related papers by JEL classification:
F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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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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    Other versions:
  3. John P. Haisken-DeNew & Christoph M. Schmidt, . "Inter-Industry and Inter-Region Differentials: Mechanics and Interpretation," Working Papers 9504, SELAPO Center for Human Resources. [Downloadable!]
  4. Jorge Saba Arbache & Andy Dickerson & Francis Green, 2004. "Trade Liberalisation and Wages in Developing Countries," Economic Journal, Royal Economic Society, vol. 114(493), pages F73-F96, 02. [Downloadable!] (restricted)
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    Other versions:
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Cited by:
(explanations, 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.)

  1. Puja Vasudeva Dutta, 2005. "Accounting for Wage Inequality in India," PRUS Working Papers 29, Poverty Research Unit at Sussex, University of Sussex. [Downloadable!]
  2. Badri Narayanan G, 2005. "Effects of trade liberalisation, environmental and labour regulations on employment in India's organised textile sector," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2005-005, Indira Gandhi Institute of Development Research, Mumbai, India. [Downloadable!]
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