01981cas a2200253 a 4500 AALejournalIMF008733 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451860399 1018-5941 BD-DhAAL BD-DhAAL Mishra, Prachi. Trade Liberalization and Wage Inequality : Evidence From India / Prachi Mishra, Utsav Kumar. Washington, D.C. : International Monetary Fund, 2005. 1 online resource (42 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We evaluate empirically the impact of the dramatic 1991 trade liberalization in India on the industry wage structure. The empirical strategy uses variation in industry wage premiums and trade policy across industries and over time. In contrast to earlier studies on developing countries, we find a strong, negative, and robust relationship between changes in trade policy and changes in industry wage premiums over time. The results are consistent with liberalization-induced productivity increases at the firm level, which get passed on to industry wages. Since tariff reductions were proportionately larger in sectors that employ a larger share of unskilled workers, the increase in wage premiums in these sectors implies that unskilled workers experienced an increase in their relative incomes. Thus, our findings suggest that trade liberalization has led to decreased wage inequality in India. Mode of access: Internet Kumar, Utsav. IMF Working Papers; Working Paper ; No. 2005/020 Full text available on IMF http://elibrary.imf.org/view/journals/001/2005/020/001.2005.issue-020-en.xml IMF e-Library