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Does Trade Promote Gender Wage Equity?: Evidence from East Asia

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Author Info
Gunseli Berik
Yana van der Meulen Rodgers
Joseph E. Zveglich Jr.

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Abstract

This 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 limiting 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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Paper provided by Levy Economics Institute, The in its series Economics Working Paper Archive with number 373.

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Date of creation: Feb 2003
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Handle: RePEc:lev:wrkpap:373

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  1. Levinsohn, James, 1993. "Testing the imports-as-market-discipline hypothesis," Journal of International Economics, Elsevier, vol. 35(1-2), pages 1-22, August. [Downloadable!] (restricted)
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  2. Mason, Patrick L, 1999. "Male Interracial Wage Differentials: Competing Explanations," Cambridge Journal of Economics, Oxford University Press, vol. 23(3), pages 261-99, May.
  3. Sandra E. Black & Philip E. Strahan, 2001. "The Division of Spoils: Rent-Sharing and Discrimination in a Regulated Industry," American Economic Review, American Economic Association, vol. 91(4), pages 814-831, September. [Downloadable!] (restricted)
  4. Günseli Berik, 2000. "Mature Export-Led Growth and Gender Wage Inequality in Taiwan," Feminist Economics, Taylor and Francis Journals, vol. 6(3), pages 1-26, November. [Downloadable!] (restricted)
  5. Blau, Francine D & Kahn, Lawrence M, 1996. "Wage Structure and Gender Earnings Differentials: An International Comparison," Economica, London School of Economics and Political Science, vol. 63(250), pages S29-62, Suppl.. [Downloadable!] (restricted)
  6. Borjas, George J & Ramey, Valerie A, 1995. "Foreign Competition, Market Power, and Wage Inequality," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 1075-1110, November. [Downloadable!] (restricted)
  7. Curry, B & George, K D, 1983. "Industrial Concentration: A Survey," Journal of Industrial Economics, Blackwell Publishing, vol. 31(3), pages 203-55, March. [Downloadable!] (restricted)
  8. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October. [Downloadable!] (restricted)
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  9. Winter-Ebmer, Rudolf, 1995. "Sex Discrimination and Competition in Product and Labour Markets," Applied Economics, Taylor and Francis Journals, vol. 27(9), pages 849-57, September.
  10. Judith K. Hellerstein & David Neumark & Kenneth R. Troske, 1997. "Market Forces and Sex Discrimination," NBER Working Papers 6321, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  1. Seguino, Stephanie, 2006. "The great equalizer?: Globalization effects on gender equality in Latin America and the Caribbean," MPRA Paper 6509, University Library of Munich, Germany. [Downloadable!]
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