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Human Capital, Trade Liberalization, and Income Risk

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dc.contributor.author Krishna, Pravin
dc.contributor.author Maloney, William
dc.contributor.author Krebs, Tom
dc.date.accessioned 2012-06-07T20:29:44Z
dc.date.available 2012-06-07T20:29:44Z
dc.date.issued 2007-07
dc.identifier.uri http://hdl.handle.net/10986/7467
dc.description.abstract Using data from Mexico, the authors study empirically the link between trade policy and individual income risk and the extent to which this varies across workers of different human capital (education) levels. They use longitudinal income data on workers to estimate time-varying individual income risk parameters in different manufacturing sectors in Mexico between 1987 and 1998, a period in which the Mexican economy experienced substantial changes in trade policy. In a second step, they use the variations in trade policy across different sectors and over time to estimate the link between trade policy and income risk for workers of varying education levels. The authors' findings are as follows. The level of openness of an economy is not found to be related to income risk for workers of any type. Furthermore, changes in trade policy (that is, trade policy reforms) are not found to have any effect on the risk to income faced by workers with either low or high levels of human capital. But workers with intermediate levels of human capital are found to experience a statistically and economically significant increase in income risk immediately following liberalization of trade. The findings thus point to an interesting non-monotonicity in the interaction between human capital, income risk and trade policy changes. en
dc.language English
dc.publisher World Bank, Washington, DC
dc.relation.ispartofseries Policy Research Working Paper; No. 4276
dc.rights CC BY 3.0 IGO
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo/
dc.subject EMPIRICAL RESULTS
dc.subject INCOME LEVELS
dc.subject SAVINGS
dc.subject LABOR MARKETS
dc.subject UNEMPLOYMENT
dc.subject LABOR DEMAND
dc.subject LABOR INCOME
dc.subject WAGE RATE
dc.subject WEALTH
dc.subject POLICY CHANGES
dc.subject INCOMPLETE MARKETS
dc.subject ECONOMIC RESEARCH
dc.subject CONSUMERS
dc.subject LONGITUDINAL DATA
dc.subject ELASTICITY
dc.subject MACROECONOMIC FACTORS
dc.subject REGRESSION ANALYSIS
dc.subject POLITICAL ECONOMY
dc.subject DEPENDENT VARIABLE
dc.subject SERIAL CORRELATION
dc.subject RISK AVERSION
dc.subject EXPECTED UTILITY
dc.subject TRADE POLICY
dc.subject TRANSITORY SHOCKS
dc.subject RANDOM WALK
dc.subject AGGREGATE TRENDS
dc.subject ECONOMETRIC ISSUES
dc.subject MEASUREMENT ERROR
dc.subject TRANSFER PAYMENTS
dc.subject DATA SET
dc.subject MEAN VALUE
dc.subject LABOR FORCE
dc.subject WAGE INEQUALITY
dc.subject LIBERALIZATION OF TRADE
dc.subject FACTORS OF PRODUCTION
dc.subject LOW INCOME
dc.subject MATHEMATICAL ECONOMICS
dc.subject POLICY RESEARCH
dc.subject TRADE REFORM
dc.subject JOB CREATION
dc.subject HIGH INFLATION
dc.subject INCOME FLUCTUATIONS
dc.subject MONETARY ECONOMICS
dc.subject ECONOMIC GROWTH
dc.subject WORKERS EXPERIENCE
dc.subject DEMAND ELASTICITY
dc.subject INEQUALITY
dc.subject FACTOR MARKETS
dc.subject RESOURCE ALLOCATION
dc.subject ASSET PRICING
dc.subject REGRESSION RESULTS
dc.subject AGGREGATE VOLATILITY
dc.subject UNSKILLED WORKERS
dc.subject POSITIVE EFFECTS
dc.subject EMPIRICAL ANALYSIS
dc.subject CAPITAL ACCUMULATION
dc.subject LABOR MARKET
dc.subject DISTRIBUTION OF INCOME
dc.subject INFLATION RATES
dc.subject POLICY REFORMS
dc.subject WAGE RATES
dc.subject UTILITY FUNCTION
dc.subject EMPIRICAL LITERATURE
dc.subject PERMANENT INCOME HYPOTHESIS
dc.subject DOWNWARD RIGIDITY OF WAGES
dc.subject WAGES
dc.subject MACROECONOMIC CONDITIONS
dc.subject INCOME RISK
dc.subject LOWERING TRADE BARRIERS
dc.subject TRADE REFORMS
dc.subject POLICY PERSPECTIVE
dc.subject SKILLED WORKERS
dc.subject SERIAL DEPENDENCE
dc.subject OPENNESS
dc.subject CHANGES IN TRADE
dc.subject POLICY CHANGE
dc.subject INCREASING FUNCTION
dc.subject PUBLIC POLICY
dc.subject INTERNATIONAL TRADE
dc.subject DEVELOPED COUNTRIES
dc.subject IMPACT OF TRADE
dc.subject INCOME SHOCKS
dc.subject GROWTH RATE
dc.subject INCOME
dc.subject ECONOMIC STATISTICS
dc.subject ECONOMIC REVIEW
dc.subject EMPIRICAL WORK
dc.subject REAL WAGE
dc.subject CAPITAL
dc.subject MACROECONOMIC ENVIRONMENT
dc.subject TOTAL COSTS
dc.subject REAL WAGES
dc.subject EMPIRICAL ESTIMATES
dc.subject MEAN GROWTH
dc.subject TRADE LIBERALIZATION
dc.subject INCOME DATA
dc.subject INCOME SHOCK
dc.subject GENERAL EQUILIBRIUM MODEL
dc.subject BUSINESS CYCLE
dc.subject FREE TRADE
dc.subject RISK AVERSE
dc.subject MICROECONOMICS
dc.subject HUMAN CAPITAL
dc.subject ECONOMIC ACTIVITY
dc.subject MACROECONOMIC VARIABLES
dc.subject LABOR DEMAND FUNCTIONS
dc.subject FOREIGN COMPETITION
dc.subject COMPARATIVE ADVANTAGE
dc.subject TARIFF RATE
dc.subject TARIFF DATA
dc.subject INDIVIDUAL INCOMES
dc.subject PERMANENT INCOME
dc.subject INCREASED INEQUALITY
dc.subject SIGNIFICANT RELATIONSHIP
dc.title Human Capital, Trade Liberalization, and Income Risk en
dc.rights.holder World Bank


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