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Trade Liberalization, Employment Flows and Wage Inequality in Brazil

Author

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  • Phillippe Leite
  • Matthew Wai-Poi
  • Francisco H.G. Ferreira

Abstract

Using nationally representative, economy-wide data, this paper investigates the relative importance of trade-mandated effects on industry wage premiums; industry and economy-wide skill premiums; and employment flows in accounting for changes in the wage distribution in Brazil during the 1988-95 trade liberalization. Unlike in other Latin American countries, trade liberalization appears to have made a significant contribution towards a reduction in wage inequality. These effects have not occurred through changes in industry-specific (wage or skill) premiums.

Suggested Citation

  • Phillippe Leite & Matthew Wai-Poi & Francisco H.G. Ferreira, 2007. "Trade Liberalization, Employment Flows and Wage Inequality in Brazil," WIDER Working Paper Series RP2007-58, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2007-58
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