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Stolper-Samuelson (Lost) In The Tropics Trade Liberalization And Wages In Colombia: 1976-1994

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  • Robbins, Donald

Abstract

This paper examines the impacts of real devaluation, trade liberalization and the growing relative supply of skill on wage dispersion in Colombia's seven principal cities over 1976-1994. The Hecksher-Ohlin-Samuelson (HOS) framework predicts that while labor supply shifts and devaluation should not affect wage dispersion, trade liberalization should compress wages in LDC's. My findings differ: growth in the supply of skills lowers, and liberalization and real devaluation raise, wage dispersion. This is not due to failure of the HOS assumptions of factor-diversified trade or that Colombia is skilled relative to the world average. The data are consistent with non-HOS assumptions where devaluation and liberalization encourage capital and embodied technical flows.

Suggested Citation

  • Robbins, Donald, 1996. "Stolper-Samuelson (Lost) In The Tropics Trade Liberalization And Wages In Colombia: 1976-1994," Harvard Institute for International Development (HIID) Papers 294380, Harvard University, Kennedy School of Government.
    • Handle: RePEc:ags:hariid:294380
    DOI: 10.22004/ag.econ.294380
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    Citations

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    Cited by:

    1. Julien Gourdon, 2011. "Wage inequality in developing countries: South–South trade matters," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 58(4), pages 359-383, December.
    2. Julien GOURDON, 2007. "Trade and Wage Inequality in Developing Countries: South-South Trade Matter," Working Papers 200710, CERDI.
    3. Lora, Eduardo & Olivera, Mauricio, 1998. "Macro Policy and Employment Problems in Latin America," IDB Publications (Working Papers) 6077, Inter-American Development Bank.
    4. Eduardo Lora & Mauricio Olivera, 1998. "Políticas macro y problemas del empleo en América Latina," Research Department Publications 4117, Inter-American Development Bank, Research Department.
    5. Sami SAAFI & Fouzi SBOUI, 2011. "LES OPPORTUNITES DES INVESTISSEMENTS DIRECTS ETRANGERS LES OPPORTUNITES DES INVESTISSEMENTS DIRECTS ETRANGERS, DIFFUSION TECHNOLOGIQUE ET DEMANDE DE LA MAIN-D’OEUVRE PAR QUALIFICATION DES INDUSTRIES T," Working Papers 240, Laboratoire de Recherche sur l'Industrie et l'Innovation. ULCO / Research Unit on Industry and Innovation.

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