The Commodity Price Boom and Regional Workers in Chile: a Natural Resources Blessing?
The Commodity Price Boom and Regional Workers in Chile: a Natural Resources Blessing?
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智利的商品价格繁荣和地区工人:自然资源的祝福?
DOI:
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发表时间:
2015
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影响因子:
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通讯作者:
Andrea Pellandra
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文献类型:
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作者:
Andrea Pellandra
This paper uses variation in Chilean regions’ exposure to a large exogenous price shock to examine the effects of the growth of a geographically concentrated natural resources-intensive export sector on local wages and employment between 2003 and 2011. I develop a specificfactors model of local labor markets with two types of workers (skilled and unskilled) that are mobile across sectors within a region but imperfectly mobile across regions that predicts that a price shock in an industry that intensively employs unskilled labor will reduce local wage premia proportionally more in regions where that industry represents a higher share of total employment compared to other regions. Empirical results show that a region exposed to a 10% increase in average prices (or a 10 dollars per worker exogenous increase in exports) experienced a 2.4% increase in average unskilled workers’ wages relatively to other regions, and that such gains contributed to a reduction in regional wage premia. I also find substantial employment reallocation from unaffected sectors to the sector that benefited from the price increase within regions, but much less evidence of mobility across regions. Finally, there is clear evidence of a decline in poverty rates and income inequality in regions most exposed to the price shock compared to other regions. JEL Classification: F14, F16, O15