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 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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Bibliographic InfoPaper provided by Levy Economics Institute in its series Economics Working Paper Archive with number wp_373.
Date of creation: Feb 2003
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- GÃ¼nseli Berik & Yana van der Meulen Rodgers & Joseph E. Zveglich, Jr., 2002. "Does Trade Promote Gender Wage Equity? Evidence from East Asia," SCEPA working paper series. SCEPA's main areas of research are macroeconomic policy, inequality and poverty, and globalization. 2002-14, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
- 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
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