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Foreign Trade and the Gender Earnings Differential in Urban Mexico

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Author Info

  • Hazarika, Gautam

    ()
    (University of Texas at Brownsville)

  • Otero, Rafael

    ()
    (University of Texas at Brownsville)

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    Abstract

    This paper examines the effect of foreign trade induced product market competition, upon workplace gender discrimination in urban Mexico as measured by the gender earnings differential. More than 3 decades ago, Becker (1957) argued that labor market discrimination was economically inefficient in that discriminating firms must forego a quantity of profit. Thus, firms with more market power, i.e., firms facing less competition, may be likelier to discriminate. It therefore follows that competition in product markets may reduce discrimination in labor markets. The spread of foreign trade has traditionally been a major factor in increased product market competition. Hence, Becker’s thesis suggests foreign trade will reduce employment discrimination. This paper finds evidence of a negative relation between foreign trade linked competition in product markets and workplace gender discrimination in data from the Mexican National Urban Employment Survey (Encuesta National de Empleo Urbano).

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    Bibliographic Info

    Article provided by Center for Economic Integration, Sejong University in its journal Journal of Economic Integration.

    Volume (Year): 19 (2004)
    Issue (Month): ()
    Pages: 353-373

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    Handle: RePEc:ris:integr:0279

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    Web page: http://econo.sejong.ac.kr/
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    Related research

    Keywords: Gender discrimination; Trade liberalization; Mexico;

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    Cited by:
    1. Mukhopadhyay, Ujjaini & Chaudhuri, Sarbajit, 2011. "Economic liberalization, gender wage inequality and welfare – a theoretical analysis," MPRA Paper 32954, University Library of Munich, Germany.
    2. Menon, Nidhiya & Rodgers, Yana van der Meulen, 2009. "International Trade and the Gender Wage Gap: New Evidence from India's Manufacturing Sector," World Development, Elsevier, vol. 37(5), pages 965-981, May.
    3. Jongsung Kim & Edinaldo Tebaldi, 2011. "Does international trade impact wage discrimination?," Economics Bulletin, AccessEcon, vol. 31(3), pages 2709-2724.
    4. 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.

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