2001RePEc: Research Papers in EconomicsOpen access

Trade Liberalization and Labor Markets in Developing Countries: Theory and Evidence

Jorge Saba Arbache

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Abstract

The aim of this paper is to present a review of the theoretical and empirical literature about the effects of trade liberalization on the labor markets of developing countries. We discuss models which seek to explain the empirical finding that openness has increased the wage inequality in several developing countries. O objetivo deste artigo é apresentar uma revisão teórica e empírica da literatura sobre os efeitos da abertura comercial no mercado de trabalho dos países em desenvolvimento. Discutem-se modelos que procuram explicar os resultados empíricos de que a liberalização comercial aumenta a desigualdade nos países em desenvolvimento.

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The aim of this paper is to present a review of the theoretical and empirical literature about the effects of trade liberalization on the labor markets of developing countries. We discuss models which seek to explain the empirical finding that openness has increased the wage inequality in several developing countries. O objetivo deste artigo é apresentar uma revisão teórica e empírica da literatura sobre os efeitos da abertura comercial no mercado de trabalho dos países em desenvolvimento. Discutem-se modelos que procuram explicar os resultados empíricos de que a liberalização comercial aumenta a desigualdade nos países em desenvolvimento.

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Available abstract

The aim of this paper is to present a review of the theoretical and empirical literature about the effects of trade liberalization on the labor markets of developing countries. We discuss models which seek to explain the empirical finding that openness has increased the wage inequality in several developing countries. O objetivo deste artigo é apresentar uma revisão teórica e empírica da literatura sobre os efeitos da abertura comercial no mercado de trabalho dos países em desenvolvimento. Discutem-se modelos que procuram explicar os resultados empíricos de que a liberalização comercial aumenta a desigualdade nos países em desenvolvimento.

Key concepts: Economics, Openness to experience, Developing country, Wage inequality, Free trade, International economics, Empirical evidence, Liberalization

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