Title: Does tariff liberalization increase wage inequality?
First published: 2005
Description: "The objective of the paper is to answer an often-asked question : if tariff rates are reduced, what will happen to wage inequality ? We consider two types of wage inequality : between occupations (skills premium), and between industries.  We use two large data bases of wage inequality that have become recently available and a large dataset of average tariff rates all covering the period between 1980 and 2000.  We find that tariff reduction is associated with higher inter-occupational and inter-industry inequality in poorer countries (those below the world median income) and the reverse in richer countries.  The results for inter-occupational inequality though must be treated with caution"--National Bureau of Economic Research web site.
Subjects: Econometric models, Income distribution, Mathematical models, Tariff, Foreign trade regulation
Places: Developing countries
LC classification: HB1