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Trade Openness and Gender in Uruguay: a CGE Analysis

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  • Maria Inés Terra
  • Marisa Bucheli
  • Carmen Estrades

Abstract

Survey results from Uruguay show that there is gender discrimination in the private labor market, and that women spend more time than men doing domestic work and less time in the labor market. We take these and other features of the survey into account to build a gender aware CGE model with endogenous labor supply and a home production function. This kind of model is a useful tool to evaluate the impact of different policies, in particular those relating to gender. In this paper we analyze the gender-differentiated impacts of trade openness in Uruguay on employment, wages and time allocation. We simulated different scenarios of tariff changes. Greater trade openness improved the situation of women in terms of employment and wages, but the impact on gender gaps depends on how trade openness affect trade flows. If net exports to Argentina increases, demand for female labor increases and the gender gap goes down. However, if net exports to Brazil and the rest of the world increase, unskilled male demand expands. When considering time distribution, the impact also depends on the elasticity of labor supply, which differs by skill.

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Bibliographic Info

Paper provided by PEP-MPIA in its series Working Papers MPIA with number 2008-16.

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Date of creation: 2008
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Handle: RePEc:lvl:mpiacr:2008-16

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Keywords: Trade openness; gender; general equilibrium model; home production; leisure; wage curve;

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References

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  1. Marisa Bucheli & Cecilia González, 2007. "An estimation of the wage curve for Uruguay," Documentos de Trabajo (working papers) 1107, Department of Economics - dECON.
  2. Harris, Richard, 1984. "Applied General Equilibrium Analysis of Small Open Economies with Scale Economies and Imperfect Competition," American Economic Review, American Economic Association, vol. 74(5), pages 1016-32, December.
  3. Fontana, Marzia & Wood, Adrian, 2000. "Modeling the Effects of Trade on Women, at Work and at Home," World Development, Elsevier, vol. 28(7), pages 1173-1190, July.
  4. Silvia Laens & María Inés Terra, 1999. "Effects of the Completition of MERCOSUR on the Uruguayan Labor Market. A simulation exercies using a CGE model," Documentos de Trabajo (working papers) 2199, Department of Economics - dECON.
  5. Carlos Casacuberta & Marcel Vaillant, 2002. "Trade and wages in Uruguay in the 1990’s," Documentos de Trabajo (working papers) 0902, Department of Economics - dECON.
  6. María Inés Terra & Gustavo Bittencourt & Rosario Domingo & Carmen Estrades & Gabriel Katz & Alvaro Ons & Héctor Pastori, 2004. "Estudios de competitividad sectoriales. Industria manufacturera," Documentos de Trabajo (working papers) 2305, Department of Economics - dECON.
  7. Rizwana Siddiqui, 2007. "Modelling Gender Dimensions of the Impact of Economic Reforms in Pakistan," Working Papers MPIA 2007-13, PEP-MPIA.
  8. Marisa Bucheli & Graciela Sanroman, 2004. "Salarios Femeninos en el Uruguay ¿Existe un Techo de Cristal?," Documentos de Trabajo (working papers) 0504, Department of Economics - dECON.
  9. Giorgina Piani, 2003. "¿Quién se casa con quién? Homogamia educativa en las parejas de Montevideo y Zona Metropolitana," Documentos de Trabajo (working papers) 1303, Department of Economics - dECON.
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Cited by:
  1. Gaddis, Isis & Pieters, Janneke, 2012. "Trade Liberalization and Female Labor Force Participation: Evidence from Brazil," IZA Discussion Papers 6809, Institute for the Study of Labor (IZA).

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