In this work we quantify the impact of trade liberalization in the global beef markets over labor income, employment and poverty levels in Uruguay. The adjustment of local beef prices after an external shock to the worldwide price levels is imperfect. Estimations indicate that 76% of a certain shock to the export prices is transmitted to the price paid to the local producers. Shortterm local price dynamics show that the transmission is pretty low paced Price changes after trade liberalization imply that men become better off, in particular those who are highly educated and work in the agricultural sector. For the case of women, increases in labor income after trade liberalization are mild. We do not observe poverty impacts after trade liberalization. Additionally, changes in employment levels are almost immaterial. We conclude that income concentration is lower in the case of men and higher for the case of women.
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Find related papers by JEL classification: D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
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