The Effects of the Colombian Trade Liberalization on Urban Poverty / Pinelopi Koujianou Goldberg, Nina Pavcnik.

Format:

Book

Author/Creator:

Goldberg, Pinelopi Koujianou.

Contributor:

National Bureau of Economic Research.

Pavcnik, Nina.

Series:

Working Paper Series (National Bureau of Economic Research) no. w11081.

NBER working paper series no. w11081

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2005.

Summary:

We examine whether the Colombian trade reform can explain any of Colombia's decline in urban poverty between 1984 and 1995. Our approach focuses on short- and medium- run channels through which trade reform could affect poverty. Despite the chronological coincidence of the poverty reduction with the trade reforms over this period, we do not observe any evidence of a link between poverty and tariff reductions operating through the labor income channel. Our descriptive analysis suggests that although poverty is predominately concentrated among individuals living in households with unemployed head, it is non-negligible among the employed and especially those working in the informal sector and those paid below minimum wage. Industry affiliation also plays a role. However, we find no evidence that the trade reforms reduced poverty via any of the above variables in a significant way. We cannot rule out the possibility that trade liberalization has contributed to the poverty reduction through general equilibrium effects, and in particular through its potential role in lowering the prices of goods consumed primarily by the poor.

Notes:

Print version record

January 2005.