Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments September 11, 2012 erstellt
Description:
We analyze the medium- and long-term consequences of India's economic and trade liberalization on three ratios of skill premia using data from the UBS Prices and Earnings surveys from 1982 to 2009. We apply the synthetic control method to construct wage trends for the city of Mumbai under the counterfactual scenario of no reforms. We find that in the first phase after the 1991 liberalization medium-skilled wages fell relative to high- and low-skilled wages. From the late 1990's on the growth of high-skilled wages outpaced the wages of the other two skill groups, pointing to new forces of globalization kicking in after the initial reforms. Overall, our results suggest that different skill levels exhibit substantively different time trends, and we confirm a general increase in wage inequality