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Does international trade impact wage discrimination?

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  • Jongsung Kim

    ()
    (Bryant University)

  • Edinaldo Tebaldi

    ()
    (Bryant University)

Abstract

This paper uses microdata from the 2006 Current Population Survey (CPS) combined with data from the U.S. International Trade Commission (USITC) and the Bureau of Economic Analysis (BEA) to evaluate the degree to which international trade affects wage discrimination. The paper's findings contribute to the literature in two fronts. First, it shows that empirical analyses that fail to properly account for gender or race differences might produce unreliable results regarding the impact of international trade (and/or competition) on the race/gender wage gap. Second, this paper provides evidence that export intensiveness contributes to reduce the overall gender wage gap, but adversely affects the wages of Hispanic women when compared to white non-Hispanic women. In addition, import penetration is found to increase the wage gap of male Hispanics compared to male white non-Hispanics.

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File URL: http://www.accessecon.com/Pubs/EB/2011/Volume31/EB-11-V31-I3-P244.pdf
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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 31 (2011)
Issue (Month): 3 ()
Pages: 2709-2724

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Handle: RePEc:ebl:ecbull:eb-11-00509

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Keywords: International Trade; Gender; Race; Wage Gap; Discrimination;

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  1. Schank, Thorsten & Schnabel, Claus & Wagner, Joachim, 2007. "Do exporters really pay higher wages? First evidence from German linked employer-employee data," Journal of International Economics, Elsevier, vol. 72(1), pages 52-74, May.
  2. Jacqueline Agesa & Darrick Hamilton, 2004. "Competition and Wage Discrimination: The Effects of Interindustry Concentration and Import Penetration," Social Science Quarterly, Southwestern Social Science Association, vol. 85(1), pages 121-135.
  3. Black, Sandra & Brainerd, Elizabeth, 2002. "Importing Equality? The Impact of Globalization on Gender Discrimination," CEPR Discussion Papers 3532, C.E.P.R. Discussion Papers.
  4. Edinaldo Tebaldi & Jongsung Kim, 2010. "Two Tales on the Returns to Education: The Impact of Trade on Wages," Review of Development Economics, Wiley Blackwell, vol. 14(4), pages 768-782, November.
  5. Hazarika, Gautam & Otero, Rafael, 2004. "Foreign Trade and the Gender Earnings Differential in Urban Mexico," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 19, pages 353-373.
  6. Bruce Elmslie & Edinaldo Tebaldi, 2007. "Sexual Orientation and Labor Market Discrimination," Journal of Labor Research, Springer, vol. 28(3), pages 436-453, July.
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