publication . Preprint . 2012

Gender Wage Discrimination and Trade Openness

Sarra Ben Yahmed;
Open Access
  • Published: 01 Nov 2012
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...
free text keywords: Gender wage gap, Employer taste Discrimination, Trade Openness, Imperfect.Competition., jel:F16, jel:J31, jel:J7, jel:L13

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