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Trade Protection and Industry Wage Structure in Poland

Trade Protection and Industry Wage Structure in Poland

Chapter:
(p.337) 8. Trade Protection and Industry Wage Structure in Poland
Source:
Globalization and Poverty
Author(s):
Chor-ching GohBeata S. Javorcik
Publisher:
University of Chicago Press
DOI:10.7208/chicago/9780226318004.003.0009

This chapter explores the link between tariff changes and the wages of workers in Poland. The data indicate that workers in sectors that experienced the largest tariff declines experienced the highest increases in wages. Workers in industries with lower tariffs tended to have higher wages. In addition, industries with a greater reduction in tariffs are those with higher proportions of the unskilled. Industry tariffs are negatively correlated with workers' hourly wages, controlling for an individual worker's characteristics, geographic variables, and employment in the private sector. Lower trade protection in Poland has been associated with higher wages for the employed. In general, the results show that a worker's wages are higher in industries with a larger reduction in trade protection, after controlling for the individual worker's characteristics, such as age, education, gender, marital status, geographic variables, and employment in the private sector.

Keywords:   trade protection, tariff, wages, Poland, workers, industry, employment, private sector

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