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2. What makes a legislator promote or thwart trade liberalization in developing democracies?
- Author:
- Simón Lodato, Andrés Dockendorff Dockendorff, and Dorotea López
- Publication Date:
- 04-2025
- Content Type:
- Journal Article
- Journal:
- Revista Brasileira de Política Internacional (RBPI)
- Institution:
- Instituto Brasileiro de Relações Internacionais (IBRI)
- Abstract:
- This paper investigates how ideological polarization and constituency factors influence legislators’ voting behaviour on Free Trade Agreements (FTAs). We explore the Chilean case, where trade policy has recently become highly politicized, to test three key relationships. First, we argue that right-wing legislators are more likely to champion FTAs when trade becomes a highly politicized issue, as the ratification of the CPTPP shows. Conversely, when trade is less politically salient, right-wing legislators are less likely to vote favourably for FTAs. Second, legislators representing regions with a high concentration of workers in tradable sectors are less likely to support trade liberalization, as it can put jobs at risk in their districts. Our results show that ideology explains legislators’ support to FTAs but only when the trade policy is politicized. Also, the probability of voting in favour of FTAs decreases as the proportion of workers in tradable sectors within the region increases. From a comparative perspective, the results highlight how the effect of politicization, observed mainly in European settings, is generalizable to a different set up: a presidential developing democracy.
- Topic:
- Ideology, Trade Liberalization, Trade Policy, Politicization, Legislators, and Free Trade Agreements
- Political Geography:
- South America and Chile
3. Local Economic Development Through Export-Led Growth: The Chilean Case
- Author:
- Andrés César and Guillermo Falcone
- Publication Date:
- 04-2024
- Content Type:
- Working Paper
- Institution:
- Center for Distributive, Labor and Social Studies (CEDLAS)
- Abstract:
- We study the causal impact of export growth on Chilean local economic development during 2000–2006 by exploiting spatial and temporal variations in local exposure stemming from the interaction of past differences in industry specialization across local labor markets and the evolution of tariffs cuts and exports across industries. We find that growing exports implied a significant reduction in labor informality and labor income gains in more exposed local markets, driven by job creation and wage growth in the formal sector. These effects concentrate on senior skilled workers. Exposed locations also exhibit a greater relative decline in the poverty rate.
- Topic:
- Poverty, Employment, Economic Growth, Tariffs, Exports, Economic Development, Labor Market, Wages, and Informality
- Political Geography:
- South America and Chile
4. Beyond Traditional Wage Premium. An Analysis of Wage Greenium in Latin America
- Author:
- Manuela Cerimelo, Pablo de la Vega, Natalia Porto, and Franco Vazquez
- Publication Date:
- 02-2024
- Content Type:
- Working Paper
- Institution:
- Center for Distributive, Labor and Social Studies (CEDLAS)
- Abstract:
- This paper estimates wage differentials between green and non-green jobs (wage greenium) in nine major Latin American countries (Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Mexico, Peru and Uruguay), which account for 81% of the region’s GDP. We contribute to the recent literature highlighting a positive wage gap for those working in green jobs in developed countries. A positive wage gap for green jobs may be a virtuous market feature, as it means that in the future workers might be encouraged to switch to greener occupations. To do so, we define green jobs as those occupations with high greenness scores using the occupational approach as in Vona et al. (2018), Vona (2021) and de la Vega et al. (2024). Our results suggest that the wage greenium for the period 2012-2019 in Latin America was between 18% to 22%. Moreover, this wage gap has remained relatively stable over the years.
- Topic:
- Labor Market, Wages, and Green Jobs
- Political Geography:
- Brazil, Argentina, Colombia, Uruguay, Latin America, Mexico, Chile, Peru, Ecuador, and Bolivia