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Trade and wages in Uruguay in the 1990’s

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Author Info
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)

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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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Publisher 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
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Handle: RePEc:ude:wpaper:0902

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Find related papers by JEL classification:
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade

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  1. 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!]
  2. Mary E. Lovely & J. David Richardson, 1998. "Trade Flows and Wage Premiums: Does Who or What Matter?," NBER Working Papers 6668, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. 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. [Downloadable!] (restricted)
  4. David H. Autor & Lawrence F. Katz & Alan B. Krueger, 1998. "Computing Inequality: Have Computers Changed The Labor Market?," The Quarterly Journal of Economics, MIT Press, vol. 113(4), pages 1169-1213, November. [Downloadable!] (restricted)
    Other versions:
  5. Wood, Adrian, 1997. "Openness and Wage Inequality in Developing Countries: The Latin American Challenge to East Asian Conventional Wisdom," World Bank Economic Review, Oxford University Press, vol. 11(1), pages 33-57, January.
  6. Wood, Adrian, 1998. "Globalisation and the Rise in Labour Market Inequalities," Economic Journal, Royal Economic Society, vol. 108(450), pages 1463-82, September. [Downloadable!] (restricted)
  7. Robert J. Barro & Jong-Wha Lee, 2000. "International Data on Educational Attainment Updates and Implications," NBER Working Papers 7911, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  8. repec:fth:prinin:377 is not listed on IDEAS
  9. 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)
  10. 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. [Downloadable!] (restricted)
  11. Noel Gaston & Daniel Trefler, 1994. "Protection, trade, and wages: Evidence from U.S. manufacturing," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 47(4), pages 574-593, July.
  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. [Downloadable!] (restricted)
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