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Revisiting the Trade-Wage Structure Nexus: A Micro Analysis for Turkey

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  • Nursel Aydiner-Avsar

Abstract

This paper analyses the impact of international trade on wages in Turkey using individual-level data. It explicitly accounts for differences in the destination and origin of trade flows as well as their composition. The results suggest that only imports of inputs from developed countries have a positive effect on wages. This effect is higher for high-skilled labour, supporting the skill-enhancing trade hypothesis. While exports to developing countries positively affect wages, especially for low-skilled labour, exports to developed countries exert downward pressure on wages, pointing to a possible impact of competitive pressures from low-wage developing countries in traditional export markets.

Suggested Citation

  • Nursel Aydiner-Avsar, 2014. "Revisiting the Trade-Wage Structure Nexus: A Micro Analysis for Turkey," Journal of Development Studies, Taylor & Francis Journals, vol. 50(8), pages 1156-1171, August.
  • Handle: RePEc:taf:jdevst:v:50:y:2014:i:8:p:1156-1171
    DOI: 10.1080/00220388.2014.895818
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    References listed on IDEAS

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    1. Donald Robbins, 2003. "The impact of trade liberalization upon inequality in developing countries - A review of theory and evidence-," Documentos de Economía 3601, Universidad Javeriana - Bogotá.
    2. Dani Rodrik, 1998. "Has Globalization Gone Too Far?," Challenge, Taylor & Francis Journals, vol. 41(2), pages 81-94, March.
    3. Robbins, Donald J., 2003. "The impact of trade liberalization upon inequality in developing countries : a review of theory and evidence," ILO Working Papers 993650553402676, International Labour Organization.
    4. repec:ilo:ilowps:365055 is not listed on IDEAS
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