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" Between 1985 and 2000, Mexico, Colombia, Brazil, India, Argentina, and Chile all opened up to trade by unilaterally cutting their tariffs across the board. Over the same time period, inequality increased in all those countries, and the timing of these increases seems to connect them to the trade liberalization episodes. For example, between 1985 and 1987, Mexico massively reduced both the coverage of its import quota regime and the average duty on imports. Between 1987 and 1990, blue-collar workers lost 15 percent of their wages, while their white-collar counterparts gained in the same proportion. Other measures of inequality followed suit. "

Abhijit V. Banerjee , Good Economics for Hard Times: Better Answers to Our Biggest Problems


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Abhijit V. Banerjee quote : Between 1985 and 2000, Mexico, Colombia, Brazil, India, Argentina, and Chile all opened up to trade by unilaterally cutting their tariffs across the board. Over the same time period, inequality increased in all those countries, and the timing of these increases seems to connect them to the trade liberalization episodes. For example, between 1985 and 1987, Mexico massively reduced both the coverage of its import quota regime and the average duty on imports. Between 1987 and 1990, blue-collar workers lost 15 percent of their wages, while their white-collar counterparts gained in the same proportion. Other measures of inequality followed suit.