Trade Shocks, Short and Long Term Effects on Education

This article investigates the impacts of economic shocks resulting from trade liberalization in Brazil on educational indicators in microregions from 1990 to 2010. The analysis explores disparities between different age cohorts, genders, qualification levels and racial groups, in addition to examining the effects on other dimensions of education. We also assess the effects of these shocks on formal employment in large occupational groups over time, as well as the role of China’s growing presence in international trade between 2000 and 2010. The results indicate that the regions most exposed to tariff reductions showed significant increases in schooling, especially among individuals aged 10 to 24. From a gender perspective, men were initially the most affected by the shocks, although the effects redistributed over time. Regarding racial composition, white individuals were the most affected in the short term. As a consequence, an increase in educational inequalities between individuals and between regions was observed, revealing the heterogeneity of the impacts of trade liberalization on human capital.