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Trade integration and inter-sectoral reallocation of workers in Colombia, 1986-2006

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  • Alexis Munari

    (Universidad de los Andes)

Abstract

This paper investigates empirically the impact of the deepening trade integration of Colombia on the transitions of workers across sectors, and then the effect of these transitions on aggregate productivity. Using microdata on workers, I find that the evolution of trade integration induced net flows of workers towards less productive sectors, resulting in a negative impact on aggregate productivity. While this effect of the increasing trade integration on inter-sectoral transitions is statistically identifiable among the whole sample of workers, it is actually driven by the subsample of least educated workers. A one-standard deviation change in the variation of the trade integration indicator raises the probability of moving to a less productive sector by more than three percentage points for the whole sample, whereas the probability raises by five percentage points within the subsample of least educated workers

Suggested Citation

  • Alexis Munari, 2016. "Trade integration and inter-sectoral reallocation of workers in Colombia, 1986-2006," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 84, pages 59-102, Enero - J.
    • Handle: RePEc:lde:journl:y:2016:i:84:p:59-102
    DOI: 10.17533/udea.le.n84a03
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    More about this item

    Keywords

    structural change; international trade; aggregate productivity; labour market; Colombia;
    All these keywords.

    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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