Trade and Skills in Uruguay: Long Term Skill Requirements

The paper discusses the links between skill requirements in the labour market and trade patterns using a CGE applied on the SAM 2005 for Uruguay. The results for alternative scenarios in the long term show that, the wage gap would widen should the pattern of trade growth follow the current trend; however, an enhanced demand of commodities would favour a reduction in the wage gap. The exercises provide insights on the economy-wide effects in the long term of the interaction of trade and accumulation of skills, and thus on the role of the current policy of development of human resources.