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Trade and Labor Outcomes in Latin America's Rural Areas: A Cross-Household Surveys Approach

Author

Listed:
  • Leonardo Gasparini

    () (Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS) - FCE - UNLP)

  • Federico Gutiérrez

    () (Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS) - FCE - UNLP)

  • Guido G. Porto

    () (Development Research Group, The World Bank.)

Abstract

This paper explores the potential link between trade and labor outcomes in rural areas in Latin America by estimating cross household-survey regression models with microdata from 60 Latin American household surveys and country aggregate data. We find a significant positive association between labor outcomes in rural areas and some measures of international trade, in particular exports, trade as a share of GDP, and the price of exports. International trade has been associated with higher wages and labor income in rural areas, in particular for those workers located in the bottom quantiles of the conditional wage distribution. Instead, our results suggest that all individuals in rural areas benefit about the same due to higher export prices. Results for urban areas are rarely statistically significant.

Suggested Citation

  • Leonardo Gasparini & Federico Gutiérrez & Guido G. Porto, 2005. "Trade and Labor Outcomes in Latin America's Rural Areas: A Cross-Household Surveys Approach," CEDLAS, Working Papers 0025, CEDLAS, Universidad Nacional de La Plata.
  • Handle: RePEc:dls:wpaper:0025
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    File URL: http://www.cedlas.econo.unlp.edu.ar/wp/wp-content/uploads/doc_cedlas25.pdf
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    References listed on IDEAS

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    1. Verbeek, Marno & Nijman, Theo, 1992. "Can Cohort Data Be Treated as Genuine Panel Data?," Empirical Economics, Springer, pages 9-23.
    2. Galiani, Sebastian & Sanguinetti, Pablo, 2003. "The impact of trade liberalization on wage inequality: evidence from Argentina," Journal of Development Economics, Elsevier, vol. 72(2), pages 497-513, December.
    3. Deaton, Angus, 1985. "Panel data from time series of cross-sections," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 109-126.
    4. Jere R. Behrman & Nancy Birdsall & Miguel Székely, 2003. "Economic Policy and Wage Differentials in Latin America," Working Papers 29, Center for Global Development.
    5. David Dollar & Aart Kraay, 2004. "Trade, Growth, and Poverty," Economic Journal, Royal Economic Society, vol. 114(493), pages 22-49, February.
    6. Kloek, T, 1981. "OLS Estimation in a Model Where a Microvariable Is Explained by Aggregates and Contemporaneous Disturbances Are Equicorrelated," Econometrica, Econometric Society, vol. 49(1), pages 205-207, January.
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    Cited by:

    1. Ricardo Bebczuk, 2009. "SME Access to Credit in Guatemala and Nicaragua: Challenging Conventional Wisdom with New Evidence," CEDLAS, Working Papers 0080, CEDLAS, Universidad Nacional de La Plata.

    More about this item

    Keywords

    trade; wages; labor; rural; Latin America;

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets

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