Does Trade Promote Gender Wage Equity? Evidence from East Asia
AbstractThis study explores the impact of competition from international trade on the gender wage gap in Taiwan and South Korea between 1980 and 1999. The dynamic implications of Becker’s (1959) theory of discrimination lead one to expect that increased competition from international trade reduces the incentive for employers to discriminate against women. This effect should be more pronounced in concentrated sectors of the economy, where employers can use excess profits to cover the costs of discrimination. Alternatively, wage discrimination may increase with growing trade in a context of employment segregation that limits women’s ability to achieve wage gains. The empirical strategy controls for differences in market structure across industries in order to isolate the effect of competition from international trade. Estimation results are not consistent with Becker’s theory, as greater international competition in concentrated sectors is associated with larger wage gaps between men and women.
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Bibliographic InfoPaper provided by Schwartz Center for Economic Policy Analysis (SCEPA), The New School in its series SCEPA Working Papers with number 2002-14.
Length: 51 pages
Date of creation: Aug 2002
Date of revision:
Other versions of this item:
- Gunseli Berik & Yana van der Meulen Rodgers & Joseph E. Zveglich Jr., 2003. "Does Trade Promote Gender Wage Equity?: Evidence from East Asia," Economics Working Paper Archive wp_373, Levy Economics Institute, The.
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F15 - International Economics - - Trade - - - Economic Integration
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-09-21 (All new papers)
- NEP-LAB-2002-09-21 (Labour Economics)
- NEP-SEA-2002-09-21 (South East Asia)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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