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N°125 |
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| Issue Q1 2011 |
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| Trade liberalization, rent sharing and wage inequality in Tunisia, 1998-2002 |
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Monia Ghazali
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| This paper attempts to empirically explore the effects of trade
liberalization process in Tunisia on average real wages and
wage inequality, via industry rents. For this purpose, we
adopt, following Revenga (1997), a flexible model of wage
setting that can accommodate both the presence of rent-
sharing behavior and competitive wage determination. Results
suggest that the quasi-rent reduction is one of the adjustment
mechanisms used by Tunisian manufacturing firms to face
trade policy changes. Two more inter-related findings deserve
interest: skilled labor was more able than unskilled labor to
capture rents before trade reforms. Hence, the reduction of
rents appears to have reduced wage inequality between
skilled and unskilled labor, over the period 1998-2002. |
Abstract
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TRADE OPENNESS ; RENT SHARING ; SKILLED WORKERS ; UNSKILLED WORKERS ; TUNISIA ; MEDITERRANEAN ; NORTH AFRICA ;
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Keywords |
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F16 ; J31 ;
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JEL classification |
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Order form
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