TY  - JOUR
AU  - Milanovic, Branko
AU  - Squire, Lyn
TI  - Does Tariff Liberalization Increase Wage Inequality? Some Empirical Evidence
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 11046
PY  - 2005
Y2  - January 2005
DO  - 10.3386/w11046
UR  - http://www.nber.org/papers/w11046
L1  - http://www.nber.org/papers/w11046.pdf
N1  - Author contact info:
Branko Milanovic
City University of New York
E-Mail: bmilanovic@gc.cuny.edu

Lyn Squire
The World Bank
1818 H Street, NW
Washington, DC 20433
E-Mail: lsquire@gdnet.org
M1  - published as Branko Milanovic, Lyn Squire. "Does Tariff Liberalization Increase Wage Inequality? Some Empirical Evidence," in Ann Harrison, editor, "Globalization and Poverty" University of Chicago Press (2007)

AB  - The objective of the paper is to answer an often-asked question : if tariff rates are reduced, what will happen to wage inequality ? We consider two types of wage inequality : between occupations (skills premium), and between industries. We use two large data bases of wage inequality that have become recently available and a large dataset of average tariff rates all covering the period between  1980 and 2000. We find that tariff reduction is associated with higher inter-occupational and inter-industry inequality in poorer countries (those below the world median income) and the reverse in richer countries. The results for inter-occupational inequality though must be treated with caution.
ER  -