European Parliament Library

A Noteon Terms of Trade Shocks and the Wage Gap

Abstract
Using Chilean data, we document that for resource-rich small open economies the effects of terms of trade shocks on the wage gap (between skilled and unskilled workers) depend on factor intensities in the non-tradable sector, following the model in Galiani, Heymann, and Magud (2010). For a skilled-intensive non-tradable sector we show that improvements in the terms of trade benefit skilled workers. We also show that this relation holds at the industry level: the wage gap widens in skilled-intensive sectors while it shrinks in unskilled-intensive ones, the more so as terms of trade volatility decreases
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; 1. Terms of Trade vs. Relative Wages; 2. Terms of Trade vs. Relative Wages; 3. Relative Wages; 1. Labor Intensities by Sector; II. Theory; III. Data and Econometric Methodology; 2. Descriptive Statistics; IV. Results; 3. Regression Output for the Aggregate Economy; 4. Relative Importance of the Sectors in the Overall Economy; 5. Regression Output for the Financial Services, Manufacturing, Construction, and Commerce Sectors; 6. Regression Output for the EGW, Mining, and Personal Services Sectors
Language
eng
Literary Form
non fiction
Note
"December 2010."
Physical Description
1 online resource (45 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781283559683

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