Abstract

Abstract This article delivers empirical evidence for the Colombian manufacturing sectors (during 1993–2012 and the subperiod 2000–2012) regarding the relationship between trade integration after the openness policy and the sector skill intensity over the skill premia, which depends on the Skill Biased Technical Change. We find that international trade reduces the positive sector skill intensity effect on wage inequality, moderately benefiting unskilled workers; however, a negative impact of the 1990 labor flexibilization on the skill premia, which increased the hiring of less expensive temporary and agency workers. Furthermore, the positive sector skill intensity impact on wage inequality is more important for trade with less developed countries than with the developed ones.

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