Trade and the skill premium in developing countries
Subtitle: the role of intermediate goods and some evidence from Peru
By: Joy Mazumdar and Myriam Quispe-Agnoli.
Contributors: Quispe-Agnoli, Myriam.; Federal Reserve Bank of Atlanta.
Series: Working paper series / Federal Reserve Bank of Atlanta ;; 2002-11; Working paper series (Federal Reserve Bank of Atlanta : Online) ;; 2002-11.
Publisher: Federal Reserve Bank of Atlanta
Published: 2002
Place of publication: [Atlanta, Ga.]
Language: eng
Format: Electronic resource
Subjects: Income distribution -- Developing countries -- Econometric models.; Income distribution -- Peru -- Econometric models.; Free trade -- Economic aspects -- Developing countries -- Econometric models.; Free trade -- Economic aspects -- Peru -- Econometric models.
Description: "The rise in income inequality in developing countries after trade liberalization has been a puzzle for trade theory, which predicts the opposite effect.  The authors present a model with imported intermediate goods in which the relative wages of skilled labor can rise due to higher imports of inputs or due to skill-biased technological change.  The evidence from Peru in the post-liberalization phase in the early 1990s supports the skilled-biased technological change hypothesis.  The authors find that most of the decrease in the blue-collar wage share in the manufacturing industries can be explained by the increase in machinery imports that followed liberalization, suggesting that the skilled-biased technology is embodied in imported machinery.  JEL classification: F16, J31, 033, 054, 015"--Federal Reserve Bank of Atlanta web site.
Notes: Includes bibliographical references.
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