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International Trade and the Gender Wage Gap: New Evidence from India's Manufacturing Sector

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  • Menon, Nidhiya
  • Rodgers, Yana van der Meulen

Abstract

Summary This study examines how increasing competitive forces from India's trade liberalization have affected women's relative wages and employment. Neoclassical theory implies that costly discrimination against female workers should diminish over time with increased competition. We incorporate this idea into a theoretical model of competition and industry concentration and test the model using repeated cross-sections of India's National Sample Survey Organization (NSSO) household survey data merged with trade and production data from 1983 to 2004. Estimates from ordinary least-squares (OLS) and fixed effects regressions at the industry-level indicate that increasing openness to trade is associated with larger wage gaps in India's concentrated manufacturing industries.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 37 (2009)
Issue (Month): 5 (May)
Pages: 965-981

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Handle: RePEc:eee:wdevel:v:37:y:2009:i:5:p:965-981

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Web page: http://www.elsevier.com/locate/worlddev

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Keywords: trade liberalization gender wage gap India discrimination Asia competition;

References

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Citations

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Cited by:
  1. Dammert, Ana C. & Ural Marchand, Beyza & Wan, Chi, 2013. "Gender Wage-Productivity Differentials and Global Integration in China," IZA Discussion Papers 7159, Institute for the Study of Labor (IZA).
  2. Michelle Rendall, 2012. "Structural change in developing countries: has it decreased gender inequality?," ECON - Working Papers 077, Department of Economics - University of Zurich.
  3. Nidhiya Menon & Yana van der Meulen Rodgers, 2010. "Gender Differences in Socioeconomic Status and Health: Evidence from the 2008 Vietnam Household Living Standard Survey," Working Papers 18, Brandeis University, Department of Economics and International Businesss School.
  4. Sarra Ben Yahmed, 2012. "Gender Wage Gaps across Skills and Trade Openness," Working Papers halshs-00793559, HAL.
  5. Sarra Ben Yahmed, 2012. "Gender Wage Discrimination and Trade Openness. Prejudiced employers in an open industry," Working Papers halshs-00793561, HAL.
  6. Mukhopadhyay, Ujjaini & Chaudhuri, Sarbajit, 2011. "Economic liberalization, gender wage inequality and welfare – a theoretical analysis," MPRA Paper 32954, University Library of Munich, Germany.
  7. Chaudhuri, Sarbajit & Roychowdhury, Somasree, 2014. "Economic Reforms and Gender-based Wage Inequality in the Presence of Factor Market Distortions," MPRA Paper 54111, University Library of Munich, Germany.
  8. Dammert, Ana C. & Ural Marchand, Beyza, 2013. "Privatization in China: Technology and Gender in the Manufacturing Sector," Working Papers 2013-12, University of Alberta, Department of Economics.
  9. Sarra Ben Yahmed, 2012. "Gender Wage Discrimination and Trade Openness," AMSE Working Papers 1233, Aix-Marseille School of Economics, Marseille, France.
  10. Kucera, David & Roncolato, Leanne & von Uexkull, Erik, 2010. "Trade contraction in the global crisis : employment and inequality effects in India and South Africa," ILO Working Papers 459401, International Labour Organization.

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