Household Impacts of Tariffs
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World Bank, Washington, DC
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How do trade reforms impact households
in different parts of the income distribution? This paper
presents a new database, the Household Impacts of Tariffs
data set, which contains harmonized household survey and
tariff data for 54 low- and lower-middle income countries.
The data cover highly disaggregated information on household
budget and income shares for 53 agricultural products, wage
labor income, nonfarm enterprise sales and transfers, as
well as spending on manufacturing and services. Using a
stylized model of the first-order impacts of import tariffs
on household real income, this paper quantifies the welfare
implications of agricultural trade protection. On average,
unilateral elimination of agricultural tariffs would
increase household incomes by 2.50 percentage points. Import
tariffs have highly heterogeneous effects across countries
and within countries across households, consumers, and
income earners; the average standard deviation of the gains
from trade within a country is 1.01 percentage points.
Palabras clave
TRADE POLICY, INCOME DISTRIBUTION, TARIFFS, AGRICULTURAL TRADE
