OECD Trade Policy Papers

ISSN :
1816-6873 (en ligne)
DOI :
10.1787/18166873
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This series is designed to make available to a wider readership selected trade policy studies prepared for use within the OECD.

NB. No. 1 to No. 139 were released under the previous series title OECD Trade Policy Working Papers.

 

Wage Implications of Trade Liberalisation

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Auteur(s):
Susan Stone1, Ricardo Cavazos Cepeda1
Author Affiliations
  • 1: OCDE, France

Date de publication
12 oct 2011
Bibliographic information
N°:
122
Pages
43
DOI
10.1787/5kg3r80brt9n-en

Cacher / Voir l'abstract

The relationship between trade and wages has been subject to intense scrutiny in the academic literature with no clear consensus emerging. This paper adds to this body of research by moving beyond the single country analysis level to a panel including developed and developing countries and data through the mid 2000.s. First we examine the relationship between wages and trade using the approach of Feenstra and Hanson to calculate mandated wage changes for our dataset. We find that imports have a significant and positive impact on wages while the sign on tariffs is negative and significant. We also look at the relationship of wage differentials at the occupation level between partner countries. We find that the difference in occupation wage is smaller for large trade partners. Finally, we discuss the potential role of NTMs in influencing the wage and trade relationship.
Mots-clés:
trade, mandated wages, occupations, wages
Classification JEL:
  • F16: International Economics / Trade / Trade and Labor Market Interactions