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Does the Liberalization of Trade Advance Gender Equality in Schooling and Health?

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  • T. Paul Schultz

    ()
    (Economic Growth Center, Yale University)

Abstract

This paper assesses the empirical relationship between the liberalization of international trade and the economic status of women. Although historically globalization is not generally linked to the advancement of women, several recent country studies find export led growth in middle and low income countries is associated with improvements in women’s employment opportunities. Does intercountry empirical evidence confirm this association across a wider range of countries, and suggest the mechanisms by which it operates? Measures of wages for men and women are an unreliable basis for study of gender inequality in many low-income countries, and thus schooling and health are analyzed here as indicators of productivity and welfare and gender gaps. For a sample of 70 countries observed at five year intervals from 1965 to 1980, tariff, quota, and foreign exchange restrictions are found to be inversely associated with trade, and with the levels of education and health, especially for women. Natural resource exports, although providing foreign exchange for imports, appear to reduce investments in schooling and health, and delay the equalization of these human capital investments between men and women. Liberalization of trade policy is consequently linked in the cross section to increased trade, to greater accumulation of human capital, and to increased gender equality.

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Bibliographic Info

Paper provided by Economic Growth Center, Yale University in its series Working Papers with number 935.

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Length: 44 pages
Date of creation: May 2006
Date of revision:
Handle: RePEc:egc:wpaper:935

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Keywords: Trade Liberalization; Schooling; Health; Gender Equality;

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  1. Schultz, T.P., 1999. "Women's Role in the Agricultural Household: Bargaining and Human Capital," Papers 803, Yale - Economic Growth Center.
  2. Daron Acemoglu, 1998. "Why Do New Technologies Complement Skills? Directed Technical Change And Wage Inequality," The Quarterly Journal of Economics, MIT Press, vol. 113(4), pages 1055-1089, November.
  3. Black, Sandra E. & Brainerd, Elizabeth, 2002. "Importing Equality? The Impact of Globalization on Gender Discrimination," IZA Discussion Papers 556, Institute for the Study of Labor (IZA).
  4. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution," NBER Working Papers 8460, National Bureau of Economic Research, Inc.
  5. Schultz, T. Paul & Tansel, Aysit, 1997. "Wage and labor supply effects of illness in Cote d'Ivoire and Ghana: instrumental variable estimates for days disabled," Journal of Development Economics, Elsevier, vol. 53(2), pages 251-286, August.
  6. Blau, Francine D & Kahn, Lawrence M, 1996. "International Differences in Male Wage Inequality: Institutions versus Market Forces," Journal of Political Economy, University of Chicago Press, vol. 104(4), pages 791-836, August.
  7. Schultz, T. Paul, 1993. "Demand for children in low income countries," Handbook of Population and Family Economics, in: M. R. Rosenzweig & Stark, O. (ed.), Handbook of Population and Family Economics, edition 1, volume 1, chapter 8, pages 349-430 Elsevier.
  8. Ozler, Sule, 2000. "Export Orientation and Female Share of Employment: Evidence from Turkey," World Development, Elsevier, vol. 28(7), pages 1239-1248, July.
  9. Richard B. Freeman & Remco Oostendorp, 2000. "Wages Around the World: Pay Across Occupations and Countries," NBER Working Papers 8058, National Bureau of Economic Research, Inc.
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  11. Schultz, T. Paul (ed.), 1995. "Investment in Women's Human Capital," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226740874, March.
  12. Robert J. Barro & Jong-Wha Lee, 1993. "International Comparisons of Educational Attainment," NBER Working Papers 4349, National Bureau of Economic Research, Inc.
  13. David Card & Thomas Lemieux, 2001. "Can Falling Supply Explain The Rising Return To College For Younger Men? A Cohort-Based Analysis," The Quarterly Journal of Economics, MIT Press, vol. 116(2), pages 705-746, May.
  14. Gordon H. Hanson, 2003. "What Has Happened to Wages in Mexico since NAFTA?," NBER Working Papers 9563, National Bureau of Economic Research, Inc.
  15. Schultz, T.P., 1998. "Inequality in the Distribution of Personal Income in the World: How It Is Changing and Why," Papers 784, Yale - Economic Growth Center.
  16. Tansel, A., 1998. "Determinants of School Attainment of Boys and Girls in Turkey," Papers 789, Yale - Economic Growth Center.
  17. Krueger, Anne O, 1974. "The Political Economy of the Rent-Seeking Society," American Economic Review, American Economic Association, vol. 64(3), pages 291-303, June.
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  24. repec:rus:hseeco:123073 is not listed on IDEAS
  25. Levinsohn, James, 1999. "Employment responses to international liberalization in Chile," Journal of International Economics, Elsevier, vol. 47(2), pages 321-344, April.
  26. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  27. David E. Bloom & Jeffrey D. Sachs, 1998. "Geography, Demography, and Economic Growth in Africa," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 29(2), pages 207-296.
  28. Schultz, T. Paul, 1988. "Education investments and returns," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 13, pages 543-630 Elsevier.
  29. Revenga, Ana, 1997. "Employment and Wage Effects of Trade Liberalization: The Case of Mexican Manufacturing," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages S20-43, July.
  30. Holmes, Jessica, 2003. "Measuring the determinants of school completion in Pakistan: analysis of censoring and selection bias," Economics of Education Review, Elsevier, vol. 22(3), pages 249-264, June.
  31. Paul Schultz, T., 2001. "Women's roles in the agricultural household: Bargaining and human capital investments," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 8, pages 383-456 Elsevier.
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Citations

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Cited by:
  1. Martina Zweimüller & Rudolf Winter-Ebmer & Doris Weichselbaumer, 2008. "Market Orientation and Gender Wage Gaps: an International Study," Kyklos, Wiley Blackwell, vol. 61(4), pages 615-635, November.
  2. Enriqueta Camps, 2009. "Globalization and culture shaping the gender gap: A comparative analysis of urban Latin America and East Asia (1970 - 2000)," Economics Working Papers 1145, Department of Economics and Business, Universitat Pompeu Fabra.

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