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Trade Liberalization and the Returns to Education: A Pseudo-panel Approach

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Author Info
Andy Dickerson ()
Francis Green ()
Jorge Saba Arbache ()

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Abstract

We investigate the impact of trade liberalization on wages and the returns to education in Brazil. Our pseudo-panel estimates of the returns are significantly lower than OLS estimates, signifying omitted ability bias in traditional cross-section estimated returns in developing countries. Trade liberalization impacted on wages and the returns to education in both traded and non-traded sectors, suggesting important spill-over effects. Wages in both sectors fell in the period immediately after trade reform, with some compression of the skilled wage premium especially at the top of the distribution. Subsequently, there has been some recovery in wages, especially in the non-traded sector.

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File URL: ftp://ftp.ukc.ac.uk/pub/ejr/RePEc/ukc/ukcedp/0114.pdf
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Publisher Info
Paper provided by Department of Economics, University of Kent in its series Studies in Economics with number 0114.

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Date of creation: Jun 2001
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Handle: RePEc:ukc:ukcedp:0114

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Postal: Department of Economics, University of Kent at Canterbury, Canterbury, Kent, CT2 7NP
Phone: +44 (0)1227 764000
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Web page: http://www.ukc.ac.uk/economics/

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Related research
Keywords: Trade Liberalization; Returns to Education; Pseudo-Panel;

Find related papers by JEL classification:
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data

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    Other versions:
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