In this paper, we analyze the effect of reducing import tariffs on intermediate inputs and final goods on the wage skill premium within firms in Indonesia - a country with a high share of unskilled workers. We present a new finding that reducing input tariffs reduces the wage skill premium within firms that import their intermediate inputs. However, we do not find significant effects from reducing tariffs on final goods on the wage skill premium within firms. (C) 2012 Elsevier BM. All rights reserved.
机构:
Univ Jyvaskyla, Jyvaskyla, Finland
Labour Inst Econ Res, Helsinki, Finland
IZA Inst Labor Econ, Bonn, GermanySt Louis Univ, Dept Econ, St Louis, MO 63103 USA
机构:
Capital Univ Econ & Business, Int Sch Econ & Management, Beijing 100070, Peoples R ChinaCapital Univ Econ & Business, Int Sch Econ & Management, Beijing 100070, Peoples R China