DOES OPENNESS REDUCE WAGE INEQUALITY IN DEVELOPING COUNTRIES? PANEL DATA EVIDENCE FROM BANGLADESH

This paper provides panel data evidence on trade liberalization and wage inequality in Bangladesh. Estimates from a dynamic model for five major manufacturing industries spanning the 1975–2002 period suggest that the effect of increased openness to trade is associated with a decrease in wage inequality. The result is in line with the theoretical prediction in that greater openness is expected to reduce wage inequality in developing countries.

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Year of publication:	2012
Authors:	MUNSHI, FARZANA
Published in:	The Singapore Economic Review (SER). - World Scientific Publishing Co. Pte. Ltd., ISSN 1793-6837. - Vol. 57.2012, 02, p. 1250012-1
Publisher:	World Scientific Publishing Co. Pte. Ltd.
Subject:	Bangladesh \| openness \| wage inequality \| panel data \| panel unit root \| dynamic model

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Extent:	application/pdf text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

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