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Trade Liberalization and the Wage Skill Premium: Evidence from Indonesia

  • Amiti, Mary
  • Cameron, Lisa

In this paper, we analyze the effect of reducing import tariffs on intermediate inputs and final goods on the wage skill premium within firms in Indonesia – a country with a high share of unskilled workers. We present a new finding that reducing input tariffs reduces the wage skill premium within firms that import their intermediate inputs. However, we do not find significant effects from reducing tariffs on final goods on the wage skill premium within firms.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 8382.

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Date of creation: May 2011
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Handle: RePEc:cpr:ceprdp:8382
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