publication . Preprint . 2012

Gender Wage Discrimination and Trade Openness

Sarra Ben Yahmed;
Open Access
  • Published: 01 Nov 2012
Abstract
International trade has been expected to reduce the gender wage gap by increasing competition and thus reducing the rents that allow employers to discriminate. However, some empirical assessments find an opposite effect. We provide an explanation for the puzzling result that trade openness widens the gender wage gap under certain circumstances. This paper introduces employer taste discrimination in an open economy model with imperfect competition to shed light on the heterogeneous impacts of openness on the gender wage gap. Firms operate in an oligopoly where and prejudiced employers can use their rents to pay men a premium, in line with Becker’s theory. Penetra...
Subjects
free text keywords: Gender wage gap, Employer taste Discrimination, Trade Openness, Imperfect.Competition., jel:F16, jel:J31, jel:J7, jel:L13

Artecona, R., Cunningham, W., 2002. Effects of Trade Liberalization on the Gender Wage Gap in Mexico. Vol. World Bank.

Atal, J. P., Ñopo, H., Winder, N., 2009. Gender and ethnic wage gaps in latin america and the caribbean Inter-American Development Bank.

Combes, P.-P., Caillaud, B., Jullien, B., 1997. Common market with regulated firms. Annals of Economics and Statistics / Annales d'Ãconomie et de Statistique (47), pp. 65-99. [OpenAIRE]

Fally, T., Paillacar, R., Terra, C., 2010. Economic geography and wages in brazil: Evidence from micro-data. Journal of Development Economics 91 (1), 155 - 168. [OpenAIRE]

Fujita, M., Krugman, P., Venables, A. J., 1999. The Spatial Economy: Cities, Regions, and International Trade. Vol. 1 of MIT Press Books. The MIT Press.

Hellerstein, J. K., Neumark, D., 2006. Using matched employer-employee data to study labor market discrimination. In: Rodgers, W. M. (Ed.), Handbook on the Economics of Discrimination. Vol. 3. Elsevier, pp. 29-60.

Helpman, E., Krugman, P., 1987. Market Structure and Foreign Trade: Increasing Returns, Imperfect Competition, and the International Economy. Vol. 1. The MIT Press.

Hering, L., Poncet, S., 2010. Market access and individual wages: evidence from china. The Review of Economics and Statistics 92 (1), pp. 145-159. [OpenAIRE]

Mayer, T., Paillacar, R., Zignago, S., 2008. Tradeprod. the cepii trade, production and bilateral protection database: Explanatory notes. Mpra paper, University Library of Munich, Germany. [OpenAIRE]

Melitz, M. J., 2003. The impact of trade on intra-industry reallocations and aggregate industry productivity. Econometrica 71 (6), 1695-1725. [OpenAIRE]

Melitz, M. J., Ottaviano, G. I. P., 01 2008. Market size, trade, and productivity. Review of Economic Studies 75 (1), 295-316.

Oaxaca, R., 1973. Male-female wage differentials in urban labor markets. International Economic Review 14 (3), pp. 693-709. [OpenAIRE]

Redding, S., Venables, A. J., 2004. Economic geography and international inequality. Journal of International Economics 62 (1), 53 - 82.

Stigler, G. J., 1958. The economies of scale. Journal of Law and Economics 1, pp. 54-71. [OpenAIRE]

Any information missing or wrong?Report an Issue