2023-09-28 14:46:10 +00:00
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abstract: 'We investigate the effects of the drastic tariff reductions of the 1980s
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and 1990s in Colombia on the wage distribution. We identify three main
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channels through which the wage distribution was affected: increasing
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returns to college education, changes in industry wages that hurt
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sectors with initially lower wages and a higher fraction of unskilled
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workers, and shifts of the labor force towards the informal sector that
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typically pays lower wages and offers no benefits. Our results suggest
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that trade policy played a role in each of the above cases. The increase
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in the skill premium was primarily driven by skilled-biased
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technological change; however, our evidence suggests that this change
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may have been in part motivated by the tariff reductions and the
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increased foreign competition to which the trade reform exposed domestic
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producers. With respect to industry wages, we find that wage premiums
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decreased by more in sectors that experienced larger tariff cuts.
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Finally, we find some evidence that the increase in the size of the
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informal sector is related to increased foreign competition-sectors with
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larger tariff cuts and more trade exposure, as measured by the size of
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their imports, experience a greater increase in informality, though this
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effect is concentrated in the years prior to the labor market reform.
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Nevertheless, increasing returns to education, and changes in industry
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premiums and informality alone cannot fully explain the increase in wage
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inequality we observe over this period. This suggests that overall the
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effect of the trade reforms on the wage distribution may have been
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small. (C) 2004 Elsevier B.V. All rights reserved.'
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affiliation: 'Attanasio, O (Corresponding Author), UCL, Dept Econ, Torrington Pl,Gower
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St,Rm 222,Drayton House, London WC1E 6BT, England.
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UCL, Dept Econ, London WC1E 6BT, England.
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Inst Fiscal Studies, London WC1E 6BT, England.
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Dartmouth Coll, Dept Econ, Hanover, NH 03755 USA.'
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author: Attanasio, O and Goldberg, PK and Pavcnik, N
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author-email: 'o.Attanasio@ucl.ac.uk
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Penny.Goldberg@yale.edu
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Nina.Pavcnik@Dartmouth.edu'
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author_list:
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- family: Attanasio
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given: O
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- family: Goldberg
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given: PK
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- family: Pavcnik
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given: N
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da: '2023-09-28'
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doi: 10.1016/j.jdeveco.2003.07.001
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eissn: 1872-6089
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files: []
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issn: 0304-3878
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journal: JOURNAL OF DEVELOPMENT ECONOMICS
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keywords: trade reforms; wage inequality; Colombia
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keywords-plus: 'PRODUCTIVITY GROWTH; LIBERALIZATION; IMPACT; COMPETITION; PROTECTION;
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MEXICO; LABOR; EMPLOYMENT; COSTS'
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language: English
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month: AUG
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number: '2'
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number-of-cited-references: '48'
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pages: 331-366
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papis_id: 73f14d7731b015d2a437435dba639546
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ref: Attanasio2004tradereforms
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times-cited: '205'
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title: Trade reforms and wage inequality in Colombia
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2023-10-01 08:15:07 +00:00
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type: article
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2023-09-28 14:46:10 +00:00
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unique-id: WOS:000222045700003
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usage-count-last-180-days: '3'
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usage-count-since-2013: '47'
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volume: '74'
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web-of-science-categories: Economics
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year: '2004'
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