Trade liberalization and the wage skill premium in Korean manufacturing plants

Author(s):  
Chin Hee Hahn ◽  
Yong-Seok Choi
2021 ◽  
Author(s):  
Kore Marc Antoine Guei

Abstract The paper assesses the impact of trade liberalization on the labour market by focusing on skill wage premium. The paper tests these effects by developing a monopolistic competition model with two factors of production characterized by their skill levels (skilled and unskilled labour). The paper finds that tariff’s level reductions cause a moderate increase in the wage gap. Thus, our analysis shows that a 10% decrease in tariffs is accompanied by a 16.1 % increase in the skill premium. Also, the same level of tariffs’ cut will on average increase the gender wage gap by 26.8%. The study implies that trade liberalization tends to benefit more workers in the skilled labour market compared to workers in the unskilled labour market.


2018 ◽  
Vol 27 (2) ◽  
pp. 519-540
Author(s):  
Mita Bhattacharya ◽  
Kien Trung Nguyen

2014 ◽  
Vol 3 (6) ◽  
pp. 77-101 ◽  
Author(s):  
Yoshimichi Murakami ◽  

2015 ◽  
Vol 105 (5) ◽  
pp. 551-557 ◽  
Author(s):  
Rafael Dix-Carneiro ◽  
Brian K. Kovak

We develop a specific-factors model of regional economies that includes two types of workers, skilled and unskilled. The model delivers a simple equation relating trade-induced local shocks to changes in local skill premia. We apply the methodology to Brazil's early 1990s trade liberalization and find statistically significant but modest effects of liberalization on the evolution of the skill premium between 1991 and 2010. The methodology uses widely available household survey data and can easily be applied to other countries and liberalization episodes.


2012 ◽  
Vol 87 (2) ◽  
pp. 277-287 ◽  
Author(s):  
Mary Amiti ◽  
Lisa Cameron

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