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Trade Liberalization and the Demand for Skilled Labor in Brazil

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  • Naercio Menezes Filho

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  • Naercio Menezes Filho

Abstract

This paper examines the relationship between trade liberalization and the evolution of the demand for skill in Brazil during the past decade. We use matched employer-employee panel data to test the hypothesis that the reduction in input tariffs made it easier for Brazilian firms to acquire technologically advanced inputs from abroad, which raised the demand for skilled labor. We find that input tariffs have a negative effect on skill upgrading and that this effect is stronger in firms that use inputs that are complements with skilled labor.

Suggested Citation

  • Naercio Menezes Filho & Naercio Menezes Filho, 2006. "Trade Liberalization and the Demand for Skilled Labor in Brazil," ECONOMIA JOURNAL, THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION - LACEA, vol. 0(Fall 2006), pages 1-28, August.
  • Handle: RePEc:col:000425:008648
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    Cited by:

    1. Amiti, Mary & Cameron, Lisa, 2012. "Trade Liberalization and the Wage Skill Premium: Evidence from Indonesia," Journal of International Economics, Elsevier, vol. 87(2), pages 277-287.
    2. Crinò, Rosario, 2012. "Imported inputs and skill upgrading," Labour Economics, Elsevier, vol. 19(6), pages 957-969.
    3. Menezes-Filho, Naércio Aquino & Jr., Mauro Rodrigues, 2003. "Tecnologia e Demanda por Qualificação na Indústria Brasileira," Revista Brasileira de Economia - RBE, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), vol. 57(3), July.
    4. Chiara Binelli, 2008. "Returns to Education and Increasing Wage Inequality in Latin America," Working Paper series 30_08, Rimini Centre for Economic Analysis.
    5. Vivarelli, Marco, 2012. "Innovation, Employment and Skills in Advanced and Developing Countries: A Survey of the Literature," IZA Discussion Papers 6291, Institute for the Study of Labor (IZA).
    6. Ernesto Friedrich de Lima Amaral & Joseph E. Potter & Daniel Hamermesh & Eduardo Rios-Neto, 2013. "Age, education, and earnings in the course of Brazilian development: Does composition matter?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 28(20), pages 581-612, March.

    More about this item

    Keywords

    Relative demand for skills; economic opening; technological advances;

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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