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Book Cover
Author Coble F., David, author

Title A note on terms of trade shocks and the wage gap / prepared by David Coble and Nicolas Magud
Published [Washington, D.C.] : International Monetary Fund, [2010]
Online access available from:
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Description 1 online resource (27 pages) : illustrations (some color)
Series IMF working paper, 2227-8885 ; WP/10/279
IMF working paper ; WP/10/279
Contents Cover Page; Title Page; Copyright Page; Contents; I. Introduction; 1. Terms of Trade vs. Relative Wages; 2. Terms of Trade vs. Relative Wages; 3. Relative Wages; 1. Labor Intensities by Sector; II. Theory; III. Data and Econometric Methodology; 2. Descriptive Statistics; IV. Results; 3. Regression Output for the Aggregate Economy; 4. Relative Importance of the Sectors in the Overall Economy; 5. Regression Output for the Financial Services, Manufacturing, Construction, and Commerce Sectors; 6. Regression Output for the EGW, Mining, and Personal Services Sectors
V. Discussion and Policy ImplicationsVI. Conclusions; 1. The Galiani-Heymann-Magud Model; References; Footnotes
Summary Using Chilean data, we document that for resource-rich small open economies the effects of terms of trade shocks on the wage gap (between skilled and unskilled workers) depend on factor intensities in the non-tradable sector, following the model in Galiani, Heymann, and Magud (2010). For a skilled-intensive non-tradable sector we show that improvements in the terms of trade benefit skilled workers. We also show that this relation holds at the industry level: the wage gap widens in skilled-intensive sectors while it shrinks in unskilled-intensive ones, the more so as terms of trade volatility decreases
Bibliography Includes bibliographical references
Notes Print version record
Subject Terms of trade.
Form Electronic book
Author Magud, Nicolas, author
International Monetary Fund. Western Hemisphere Department, issuing body
ISBN 1283559684