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Trade and wages in Uruguay in the 1990’s

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  • Carlos Casacuberta

    ()
    (Departmento de Economía, Facultad de Ciencias Sociales, Universidad de la República)

  • Marcel Vaillant

    ()
    (Departmento de Economía, Facultad de Ciencias Sociales, Universidad de la República)

Abstract

The main facts of the Uruguayan labour market along the nineties may be summarized in three main phenomena: increase in wage inequality with an increase of the skill wage premium and changes in the inter-industrial wage structure; destruction of unskilled jobs, associated to trade openness and changes in the productive specialization that implied technical change biased to the employment of workers with higher skill; decrease of the role of unions in wage negotiation. This paper attempts an empirical strategy to evaluate the impact of increased trade openness in the industry wage premiums and in the skill wage premiums, combining micro and macro data. We find a link between trade openness and both industry and wage premiums in the 1990’s in Uruguay: in a given industry, reduced protection implied an increase in the skill premium and a lower industry relative wage

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Bibliographic Info

Paper provided by Department of Economics - dECON in its series Documentos de Trabajo (working papers) with number 0902.

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Length: 41 pages
Date of creation: Oct 2002
Date of revision:
Handle: RePEc:ude:wpaper:0902

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References

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  1. Marcel Vaillant, 2001. "Trade policy on a country basis and multilateral arrangements: The case of Uruguay," Documentos de Trabajo (working papers) 0201, Department of Economics - dECON.
  2. Barro, Robert J & Lee, Jong-Wha, 2001. "International Data on Educational Attainment: Updates and Implications," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 541-63, July.
  3. Mary E. Lovely & J. David Richardson, 2000. "Trade Flows and Wage Premiums: Does Who or What Matter?," NBER Chapters, in: The Impact of International Trade on Wages, pages 309-348 National Bureau of Economic Research, Inc.
  4. John P. Haisken-DeNew & Christoph M. Schmidt, . "Inter-Industry and Inter-Region Differentials: Mechanics and Interpretation," Working Papers 9504, SELAPO Center for Human Resources.
  5. David H. Autor & Lawrence F. Katz & Alan B. Krueger, 1997. "Computing Inequality: Have Computers Changed the Labor Market?," NBER Working Papers 5956, National Bureau of Economic Research, Inc.
  6. Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, vol. 56(2), pages 259-93, March.
  7. André Sapir & Richard Baldwin & Daniel Cohen & Anthony Venables, 1999. "Market integration, regionalism and the global economy," ULB Institutional Repository 2013/8074, ULB -- Universite Libre de Bruxelles.
  8. Noel Gaston & Daniel Trefler, 1994. "Protection, trade, and wages: Evidence from U.S. manufacturing," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 47(4), pages 574-593, July.
  9. Dani Rodrik, 1997. "Has Globalization Gone Too Far?," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 57.
  10. Wood, Adrian, 1997. "Openness and Wage Inequality in Developing Countries: The Latin American Challenge to East Asian Conventional Wisdom," World Bank Economic Review, World Bank Group, vol. 11(1), pages 33-57, January.
  11. repec:fth:prinin:377 is not listed on IDEAS
  12. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June.
  13. Barro, Robert J & Lee, Jong Wha, 1996. "International Measures of Schooling Years and Schooling Quality," American Economic Review, American Economic Association, vol. 86(2), pages 218-23, May.
  14. Wood, Adrian, 1998. "Globalisation and the Rise in Labour Market Inequalities," Economic Journal, Royal Economic Society, vol. 108(450), pages 1463-82, September.
  15. Adriana Cassoni, 1999. "The wage elasticity of labour demand in the Uruguayan manufacturing sector after re-unionisation: new results," Documentos de Trabajo (working papers) 1499, Department of Economics - dECON.
  16. 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.
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Citations

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Cited by:
  1. Inés Terra & Marisa Bucheli & Carmen Estrades, 2007. "Trade Openness and Gender in Uruguay: a CGE Analysis," Documentos de Trabajo (working papers) 2407, Department of Economics - dECON.
  2. Guillermo Alves & Verónica Amarante & Gonzalo Salas & Andrea Vigorito, 2012. "La desigualdad del ingreso en Uruguay entre 1986 y 2009," Documentos de Trabajo (working papers) 12-03, Instituto de Economía - IECON.
  3. Amarante, Veronica & Vigorito, Andrea, 2011. "Uruguayâ..s Income Inequality and Political Regimes during 1981â..2010," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  4. Marisa Bucheli & Cecilia González, 2007. "An estimation of the wage curve for Uruguay," Documentos de Trabajo (working papers) 1107, Department of Economics - dECON.
  5. Alvaro Forteza & Daniel Buquet & Mario Ibarburu & Jorge Lanzaro & Andrés Pereyra & Eduardo Siandra & Marcel Vaillant, 2003. "Understanding reform. The Uruguayan case," Documentos de Trabajo (working papers) 0603, Department of Economics - dECON.
  6. Rossana Patron & Inés Terra, 2009. "Trade and Skills in Uruguay: Long Term Skill Requirements," Revista de Economía y Estadística, Universidad Nacional de Córdoba, Facultad de Ciencias Económicas, Instituto de Economía y Finanzas, vol. 0(2), pages 25-40, July.

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