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The Poor under Globalization in Asia, Latin America, and Africa$
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Machiko Nissanke and Erik Thorbecke

Print publication date: 2010

Print ISBN-13: 9780199584758

Published to Oxford Scholarship Online: September 2010

DOI: 10.1093/acprof:oso/9780199584758.001.0001

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Trade Liberalization, Employment Flows, and Wage Inequality in Brazil

Trade Liberalization, Employment Flows, and Wage Inequality in Brazil

Chapter:
(p.199) 8 Trade Liberalization, Employment Flows, and Wage Inequality in Brazil
Source:
The Poor under Globalization in Asia, Latin America, and Africa
Author(s):

Francisco H. G. Ferreira

Phillippe G. Leite

Matthew Wai‐Poi

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199584758.003.0008

Using nationally representative, economy‐wide data, this chapter investigates the relative importance of trade‐mandated effects on industry wage premiums; industry and economy‐wide skill premiums; and employment flows in accounting for changes in the wage distribution in Brazil during the 1988–95 trade liberalization. Unlike in other Latin American countries, trade liberalization appears to have made a significant contribution towards a reduction in wage inequality. These effects have not occurred through changes in industry‐specific (wage or skill) premiums. Instead, they appear to have been channelled through substantial employment flows across sectors and formality categories. Changes in the economy‐wide skill premium are also important.

Keywords:   Brazil, employment flows, inequality, trade liberalization

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