Apertura comercial, productividad, empleo y salarios: Un análisis por diferencias-en-diferencias
AbstractThis paper analyzes the effects of increased competition resulting from the creation of the Southern Common Market (MERCOSUR) on productivity, employment and wages for the Uruguayan manufacturing sector at the plant level. We use impact evaluation techniques –which are not common in trade reform studies– namely matching and difference-in-differences estimation for the period 1988-1995. The definition of an appropriate control group is a big challenge and it may be improved by the use of matching procedures. We define a set of “tradable” and “non-tradable” industries according to the level and stability of the import penetration and export orientation ratio of the industries. We further explore on the behavior of plants belonging to the export oriented and import competing sectors. One of the most robust findings is that increased trade liberalization seems to improve total factor productivity with a greater effect on plants belonging to the import competing sector. Furthermore, we find reductions in employment driven mainly by the decrease in blue collars, increases in wages and a reduction in the wage gap between white and blue collars as a result of increased trade exposure. Thus, the increase in productivity along with the unemployment of unskilled workers would indicate a room for training, labour and social policies in order to countervail the negative impact of trade liberalization on less qualified workers.
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Bibliographic InfoPaper provided by Instituto de Economia - IECON in its series Documentos de Trabajo (working papers) with number 12-11.
Length: 53 pages
Date of creation: Oct 2012
Date of revision:
Trade policy; Productivity; Employment; Wages;
Find related papers by JEL classification:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- J2 - Labor and Demographic Economics - - Demand and Supply of Labor
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-12-22 (All new papers)
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