The Impacts of Trade on the Brazilian Labor Market: A CGE Model Approach (original) (raw)
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Trade Liberalization and Labor Market Adjustment in Brazil
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The authors study the impact of the 1988�94 trade liberalization in Brazil on wage distribution. They explore three main channels through which trade liberalization could have affected wage distribution: (1) increasing returns to skilled workers because of Hecksher-Ohlin adjustments to trade policy; (2) trade-induced skill-biased technological change; and (3) changes in industry wage premiums.The results suggest that trade reform in
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economy. (Working in progress) Allexandro Mori Coelho Eduardo Amaral Haddad Abstract This paper aims to present the CGE model developed and implemented in order to evaluate the changes in employment, output and macroeconomic variables associated with distinct trade liberalization and integration strategies at national and state levels. Once we have obtained the estimates for the Brazilian economy, a top-down disaggregation is used to estimate the impacts on its 27 states. The model will indicate what would be the macro, sectoral and spatial effects on Brazilian economy if a specific were implemented, giving conditions to compare effects and shedding light on choice decision among alternative trade and integration strategies, since each trade agreement would entail different impacts on national economy and on its 27 sub-national spaces.
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