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Trade and wages in Uruguay in the 1990’s

Author

Listed:
  • Carlos Casacuberta

    (Departmento de Economía, Facultad de Ciencias Sociales, Universidad de la República)

  • Marcel Vaillant

    (Departmento de Economía, Facultad de Ciencias Sociales, Universidad de la República)

Abstract

The main facts of the Uruguayan labour market along the nineties may be summarized in three main phenomena: increase in wage inequality with an increase of the skill wage premium and changes in the inter-industrial wage structure; destruction of unskilled jobs, associated to trade openness and changes in the productive specialization that implied technical change biased to the employment of workers with higher skill; decrease of the role of unions in wage negotiation. This paper attempts an empirical strategy to evaluate the impact of increased trade openness in the industry wage premiums and in the skill wage premiums, combining micro and macro data. We find a link between trade openness and both industry and wage premiums in the 1990’s in Uruguay: in a given industry, reduced protection implied an increase in the skill premium and a lower industry relative wage

Suggested Citation

  • Carlos Casacuberta & Marcel Vaillant, 2002. "Trade and wages in Uruguay in the 1990’s," Documentos de Trabajo (working papers) 0902, Department of Economics - dECON.
    • Handle: RePEc:ude:wpaper:0902
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    File URL: https://hdl.handle.net/20.500.12008/1963
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    Cited by:

    1. Alvaro Forteza & Daniel Buquet & Mario Ibarburu & Jorge Lanzaro & Andrés Pereyra & Eduardo Siandra & Marcel Vaillant, 2003. "Understanding reform. The Uruguayan case," Documentos de Trabajo (working papers) 0603, Department of Economics - dECON.
    2. Verónica Amarante & Marco Colafranceschi & Andrea Vigorito, 2011. "Uruguay's Income Inequality and Political Regimes during 1981-2010," WIDER Working Paper Series wp-2011-094, World Institute for Development Economic Research (UNU-WIDER).
    3. Inés Terra & Marisa Bucheli & Carmen Estrades, 2007. "Trade Openness and Gender in Uruguay: a CGE Analysis," Documentos de Trabajo (working papers) 2407, Department of Economics - dECON.
    4. Marisa Carla Bucheli Anaya & Cecilia González Rodríguez-Villamil, 2012. "An estimation of the wage curve for Uruguay," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, June.
    5. Bucheli, Marisa & Furtado, Magdalena, 2005. "Uruguay 1998-2002: income distribution during the crisis," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    6. Guillermo Alves & Verónica Amarante & Gonzalo Salas & Andrea Vigorito, 2012. "La desigualdad del ingreso en Uruguay entre 1986 y 2009," Documentos de Trabajo (working papers) 12-03, Instituto de Economía - IECON.
    7. Rossana Patron & Inés Terra, 2009. "Trade and Skills in Uruguay: Long Term Skill Requirements," Revista de Economía y Estadística, Universidad Nacional de Córdoba, Facultad de Ciencias Económicas, Instituto de Economía y Finanzas, vol. 47(2), pages 25-40, Diciembre.
    8. Amarante, Veronica & Vigorito, Andrea, 2011. "Uruguayâ..s Income Inequality and Political Regimes during 1981â..2010," WIDER Working Paper Series 094, World Institute for Development Economic Research (UNU-WIDER).

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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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