Mamoon, Dawood (2007): Skill Premiums of Trading in International Markets and Equity: Some Lessons for Pro Poor Education Policies in Developing Countries. Published in: Latin American Studies Association (LASA) CD-ROM, No. XXVII International Congress (August 2007)
Download (676kB) | Preview
The aim of this paper is to examine whether the human capital accumulation, that is a result of increased trade, further exacerbates industrial wage differentials. We find that level of education is one of the key determinants in explaining wage inequalities. Though countries which have a higher level of human capital do well on the inequality front, our results suggest that post liberalization human capital accumulation is associated with higher premiums to skilled labor thus increasing wage gaps. In this context, governments in developing countries may need to increase the mean level of human capital to achieve equity in labor markets.
|Item Type:||MPRA Paper|
|Institution:||Institute of Social Studies|
|Original Title:||Skill Premiums of Trading in International Markets and Equity: Some Lessons for Pro Poor Education Policies in Developing Countries|
|Keywords:||Integration; Trade Liberalization; Wage Inequality|
|Subjects:||J - Labor and Demographic Economics > J0 - General > J01 - Labor Economics: General
I - Health, Education, and Welfare > I2 - Education and Research Insititutions > I20 - General
F - International Economics > F1 - Trade > F16 - Trade and Labor Market Interactions
|Depositing User:||Dawood Mamoon|
|Date Deposited:||01. Aug 2007|
|Last Modified:||18. Feb 2013 18:59|
AMANN, Edmund, ASLANINDIS, Nektarios, NIXSON, Fredrick, and WALTERS, Bernard, “Economic Growth and Poverty Alleviation: A Reconsideration of Dollar and Kraay,” Development Economic Discussion Papers, No. 0407, 2002. http://les.man.ac.uk/ses/research/devpapers/Povertyconference%5B1%5D.pdf ARBACHE, Jorge S., DICKERSON, Andy and GREEN, Francis, “Trade Liberalization and Wages in Developing Countries,” Economic Journal, Vol. 114, No. 493, 2004, pp. 73-96 BARRO, Robert J., “Does an Income Gap Put a Hex on Growth’ Business Week, March 29, 1999
COCKBURN, John, “Trade Liberalization and Poverty in Nepal: A Computable General Equilibrium Micro Simulation Analysis,” The Centre for the Study of African Economies Working Paper Series. Working Paper 170, 2002 http://www.bepress.com/csae/paper170
CONCEICAO, Pedro and GALBRAITH, Jame K., “Constructing Long and Dense Time Series of Inequality using the Theil Index,” Eastern Economic Journal, Vol 26, 2001, pp. 61-74
DOLLAR, David and KRAAY, Aart, “Trade, Growth, and Poverty,” Economic Journal, Vol. 114, pp. F22-F49, February 2004
DUR, Robert A. J. and TEULINGS, Coen N, “Education, Income Distribution and Public Policy,” Unpublished draft, Tinbergen Institute, 2002 http://www.iza.org/iza/en/papers/transatlantic/1_teulings.pdf EICHE, Theo S. and CECILIA Garcia-Penalosa , “Inequality and Growth: The Dual role of human Capital in Development,” Journal of Development Economics, vol. 66, issue 1, 2001, pages 173-197
FRANKEL, Jeffery and ROMER, David, “Does Trade Cause Growth?” American Economic Review, vol. 89, no. 3, 1999, pp 379-399.
FRIEDMAN, Jed, “Differential Impacts of Trade Liberalization on Indonesia’s Poor and Non-Poor,” Conference on International Trade and Poverty, Stockholm, October 20, 2000.
HANSON, Gordon, and HARISSON, Ann, “Trade and Wage Inequality in Mexico,” Industrial and Labour Relations Review, Vol. 52, no. 2, 1999, pp. 271-288.
JAYASURIYA, Sisira, “Globalization, Equity and Poverty: The South Asian Experience,” Annual Global Conference of GDN, Cairo, Egypt, 2002.
LEGOVINI, Avianna, BOUILLON, Cesar and LUSTIG, Nora, “Can Education Explain Income Inequality Changes in Mexico?” Inter-American development Bank (IADB), Washington D.C., 2001
LOFGREN, Hans, “Trade Reform and the poor in Morocco: A Rural-Urban General Equilibrium Analysis of Reduced Protection,” TMD Discussion paper, IFPRI, Washington DC, No. 38, 1999 RAVALLION, Martin, “The Debate on Globalization, Poverty, and Inequality: Why Measurement Matters” World Bank Policy Research Working Paper 3038, Washington DC, 2003 http://econ.worldbank.org/files/26010_wps3038.pdf RODRIGUEZ, Francisco and RODRIK, Dani, ‘Trade Policy and Economic Growth: A Skeptic’s Guide to the Cross-National Evidence,’ Macroeconomics Annual, Ben Bernanke and Kenneth Rogoff, eds., MIT Press for NBER, 2000
RODRIK, Dani, SUBRAMANIAN, Arvind, and TREBBI, Francesco, “Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development,” Journal of Economic Growth, Vol. 9, no. 2, June 2004, pp. 131-165
ROSE, Andrew K., “Do WTO Members Have a More Liberal Trade Policy?” NBER Working Paper 9347, 2002.
SACHS, Jeffrey D. and WARNER, Andrew, ‘Economic Reform and Process of Global Integration,’ Brookings Papers on Economic Activity, (1), 1-118, 1995
TINBERGEN, Jan, Income Distribution: Analysis and Policies, Amsterdam: American Elsevier, 1975
WINTERS, L. Alan., “Trade Liberalization and Economic Performance: An Overview,” The Economic Journal, Vol. 114, 2004, pp. 4-21
World Development Report 2000/1, Attacking Poverty, 2001