Abstract

MOLINA FERNANDEZ, José Miguel  and  GONZALES ZUAZO, Rodrigo. Trade Exposure and Labor Earnings in Bolivia: Worker Level Evidence. rlde [online]. 2019, n.31, pp.9-30. ISSN 2074-4706.

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%.

Keywords : Import penetration; labor income; international trade; pseudo-panel.

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