This paper analyses the effect of increased international trade on returns to education in different working sectors and regions of Chile. A Difference-in-Difference model is used for three different regions of export specialization, where each export-intensive sector is compared with a synthetic control group of non-tradable sectors before and after the Free Trade Agreements that Chile signed with the EU and US. We find that returns to unskilled labor in the agriculture sector benefit compared with returns to mid-skilled labor in the sector. Mid-skilled labor, which is used intensively in the beverages industry sector, seems to have gained compared to unskilled labor but the effect is not highly significant. In the aquaculture sector, returns to unskilled labor have significantly decreased.

Baiardi, A.
hdl.handle.net/2105/47855
Business Economics
Erasmus School of Economics

Scandolo, E. (2019, July 25). Chile’s regional export specialization and its effects on wage distribution. Business Economics. Retrieved from http://hdl.handle.net/2105/47855