Impact Of Trade Liberalisation On Labour Conditions On The Textile Sector Of Mauritius: The Fate Of Female Workers

Trade Liberalisation is believed to have major implications for factor markets through re-allocation of inputs across sectors. Current empiricism reveals a paucity of research and literature with respect to the gender implications within some developing countries. In certain economies, female workers are affected dis-proportionately as they constitute a major chunk of the workforce of impacted industries. Within this purview, our paper extends the current literature to fill-up this gap. A partial equilibrium approach is reckoned to assess the impact of trade liberalization via the demand elasticity of labour in the wearing apparel industry in Mauritius, particularly dominated by female workers. Our findings reveal that trade liberalisation would make it more difficult for female workers to negotiate wage increases in the long run as these may entail significant employment cuts in the (Export Processing Zone) EPZ.This is due to the increased elasticity of demand for female employment and prevalent trade liberalization environment that would result in a more than proportionate increase in lay-offs, among unskilled workers in the manufacturing sector, should wage increases be claimed.