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NAFTA and the Wages of Married Women

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  • Shushanik Hakobyan
  • John McLaren

Abstract

Using US Census data for 1990-2000, we estimate effects of NAFTA on US wages, focusing on differences by gender. We find that NAFTA tariff reductions are associated with substantially reduced wage growth for married blue-collar women, much larger than the effect for other demographic groups. We investigate several possible explanations for this finding. It is not explained by differential sensitivity of female-dominated occupations to trade shocks, or by household bargaining that makes married women workers less able to change their industry of employment than other workers. We find some support for an explanation based on an equilibrium theory of selective non-participation in the labor market, whereby some of the higher-wage married women workers in their industry drop out of the labor market in response to their industry's loss of tariff. However, this does not fully explain the findings so we are left with a puzzle.

Suggested Citation

  • Shushanik Hakobyan & John McLaren, 2018. "NAFTA and the Wages of Married Women," NBER Working Papers 24424, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:24424
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    References listed on IDEAS

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    Cited by:

    1. Ishan Ghosh & Mario Larch & Irina Murtazashvili & Yoto V. Yotov, 2022. "Negative Trade Shocks and Gender Inequality: Evidence from the USA," Economica, London School of Economics and Political Science, vol. 89(355), pages 564-591, July.
    2. Wolfgang Keller & Hale Utar, 2022. "Globalization, Gender, and the Family [Trade Shocks and Labor Adjustment: A Structural Empirical Approach]," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(6), pages 3381-3409.
    3. Fariha Kamal & Asha Sundaram & Cristina J. Tello-Trillo, 2020. "Family-Leave Mandates and Female Labor at U.S. Firms: Evidence from a Trade Shock," Working Papers 20-25, Center for Economic Studies, U.S. Census Bureau.

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    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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