Trade Exposure and Labor Earnings in Bolivia: Worker Level Evidence
DOI:
https://doi.org/10.35319/lajed.20193192Keywords:
Import penetration, labor income, international trade, pseudo-panelAbstract
This document investigates how the import exposure in certain Bolivian industries affected workers’ labor income from these industries. Working with the 2005-2009 Household Surveys, Mincer equations are estimated using pseudo-panel techniques to control the presence of constant non-observable time-invariant variables. The econometric problems of inconsistency that can arise when not explicitly considering the presence of these effects when estimating Mincer equations are discussed. Our pseudo-panel results suggest reduced effects: we estimate that a 1% increase in imports penetration in a given industry reduces real labor income for its workers by 0.84%.
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