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Trade policy, income risk, and welfare

Author: Tom Krebs; Pravin Krishna; William A Maloney; National Bureau of Economic Research.
Publisher: Cambridge, MA : National Bureau of Economic Research, 2005.
Series: NBER working paper series, working paper 11255; World Bank E-Library Archive
Edition/Format:   Computer file : EnglishView all editions and formats
Database:WorldCat
Summary:
"This paper studies empirically the relationship between trade policy and individual income risk faced by workers, and uses the estimates of this empirical analysis to evaluate the welfare effect of trade reform. The analysis proceeds in three steps. First, longitudinal data on workers are used to estimate time-varying individual income risk parameters in various manufacturing sectors. Second, the estimated income  Read more...
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Details

Material Type: Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Tom Krebs; Pravin Krishna; William A Maloney; National Bureau of Economic Research.
OCLC Number: 874233336
Notes: Erscheinungsjahr in Vorlageform:c2005.
Description: 1 online resource.
Series Title: NBER working paper series, working paper 11255; World Bank E-Library Archive
Responsibility: Tom Krebs, Pravin Krishna, William Maloney.

Abstract:

"This paper studies empirically the relationship between trade policy and individual income risk faced by workers, and uses the estimates of this empirical analysis to evaluate the welfare effect of trade reform. The analysis proceeds in three steps. First, longitudinal data on workers are used to estimate time-varying individual income risk parameters in various manufacturing sectors. Second, the estimated income risk parameters and data on trade barriers are used to analyze the relationship between trade policy and income risk. Finally, a simple dynamic incomplete-market model is used to assess the corresponding welfare costs. In the implementation of this methodology using Mexican data, we find that trade policy changes have a significant short run effect on income risk. Further, while the tariff level has an insignificant mean effect, it nevertheless changes the degree to which macroeconomic shocks affect income risk"--National Bureau of Economic Research web site.

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