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Who benefits and how much? : how gender affects welfare impacts of a booming textile industry

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  • Nicita, Alessandro
  • Razzaz, Susan

Abstract

Exports of textile products originating from Sub-Saharan African countries have grown dramatically in the past decade. Recent trade initiatives, such as the"African Growth Opportunity Act"and"Everything but Arms,"along with low labor costs and improved integration into world markets, are giving further stimulus to the growth of the textile and apparel industry in Sub-Saharan African countries. Nicita and Razzaz explore the extent to which the poor are also beneficiaries of the export-led growth of particular economic sectors, or whether the poor are unable to reap any of the benefits and therefore fall further behind. They use a methodology that combines the matching methods literature (to identify individuals more likely to fill the new jobs of the expanding sector) with the industry wage premium literature (to quantify the gains of the individuals that move into the expanding sector). The results indicate that a sustained export-driven growth in Madagascar's textile and apparel industry will lead to a substantial increase in the income of poor households, with a consequent decrease in poverty. In a scenario simulating five years of expansion of the textile sector, the authors estimate that more than one million individuals will directly or indirectly receive some benefit. On average, households in which one or more members work in the textile sector get an increase in purchasing power of about 24 percent or US$14 a month. The results further show that benefits are unevenly distributed across male and female workers. Households in which a male member is employed in the textile and apparel industry increase their purchasing power by 36 percent or US$24.5 a month, compared with 22 percent or US$12.2 a month in the case of a female worker.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3029.

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Date of creation: 30 Apr 2003
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Handle: RePEc:wbk:wbrwps:3029

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Keywords: Health Monitoring&Evaluation; Water and Industry; Environmental Economics&Policies; Public Health Promotion; Labor Policies; Health Monitoring&Evaluation; Water and Industry; Environmental Economics&Policies; Banks&Banking Reform; Health Economics&Finance;

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References

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  1. 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.
  2. L. Alan Winters & Neil McCulloch & Andrew McKay, 2004. "Trade Liberalization and Poverty: The Evidence So Far," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 72-115, March.
  3. Helwege, Jean, 1992. "Sectoral Shifts and Interindustry Wage Differentials," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 10(1), pages 55-84, January.
  4. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, Econometric Society, vol. 47(1), pages 153-61, January.
  5. Hoekman, Bernard & Ng, Francis & Olarreaga, Marcelo, 2001. "Eliminating excessive tariffs on exports of least developed countries," Policy Research Working Paper Series 2604, The World Bank.
  6. Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, Econometric Society, vol. 56(2), pages 259-93, March.
  7. John P. Haisken-DeNew & Christoph M. Schmidt, 2000. "Interindustry and Interregion Differentials: Mechanics and Interpretation," The Review of Economics and Statistics, MIT Press, vol. 79(3), pages 516-521, August.
  8. Heckman, James J & Ichimura, Hidehiko & Todd, Petra, 1998. "Matching as an Econometric Evaluation Estimator," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 65(2), pages 261-94, April.
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Citations

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Cited by:
  1. Maurizio Bussolo & Rafael E. De Hoyos, 2009. "Gender Aspects of the Trade and Poverty Nexus : A Macro-Micro Approach," World Bank Publications, The World Bank, number 13264.
  2. Horst Siebert, 2008. "Preventing financial instability and currency crises," Kiel Working Papers 1401, Kiel Institute for the World Economy.
  3. KUEPIE Mathias & DZOSSA Anaclet Désiré & KELODJOUE Samuel, 2013. "Determinants of labor market gender inequalities in Cameroon, Senegal and Mali: the role of human capital and the fertility burden," CEPS/INSTEAD Working Paper Series 2013-08, CEPS/INSTEAD.
  4. Lay, Jann & Golan, Jennifer, 2009. "The Impact of Agricultural Market Liberalisation from a Gender Perspective: Evidence from Uganda," Open Access Publications from Kiel Institute for the World Economy 39944, Kiel Institute for the World Economy (IfW).
  5. Christophe Nordman & Faly Rakotomanana & Anne-Sophie Robilliard, 2009. "Gender Disparities in the Malagasy Labour Market," Working Papers DT/2009/08, DIAL (Développement, Institutions et Mondialisation).
  6. Christophe Nordman & François Roubaud, 2005. "Reassessing the Gender Wage Gap: Does Labour Force Attachment Really Matter? Evidence from Matched Labour Force and Biographical Surveys in Madagascar," Working Papers 16, ECINEQ, Society for the Study of Economic Inequality.
  7. Fatma El-Hamidi, 2007. "Have Economic Reforms Paid Off? Gender Occupational Inequality in the New Millennium in Egypt," Working Papers 338, University of Pittsburgh, Department of Economics, revised Feb 2008.
  8. Barraud, Ariel A. & Calfat, Germán, 2005. "Poverty Effects from Trade Liberalisation in Argentina," IOB Discussion Papers, Universiteit Antwerpen, Institute of Development Policy and Management (IOB) 2005.04, Universiteit Antwerpen, Institute of Development Policy and Management (IOB).
  9. Dammert, Ana C. & Ural Marchand, Beyza & Wan, Chi, 2013. "Gender Wage-Productivity Differentials and Global Integration in China," IZA Discussion Papers 7159, Institute for the Study of Labor (IZA).
  10. Peter Glick & François Roubaud, 2004. "Export Processing Zone Expansion in an African Country: What are the Labor Market and Gender Impacts?," Working Papers DT/2004/15, DIAL (Développement, Institutions et Mondialisation), revised Dec 2004.
  11. Cling, Jean-Pierre & Razafindrakoto, Mireille & Roubaud, Francois, 2005. "Export processing zones in Madagascar: a success story under threat?," World Development, Elsevier, vol. 33(5), pages 785-803, May.
  12. Jennifer Golan & Jann Lay, 2008. "More Coffee, More Cigarettes? Coffee Market Liberalisation, Gender, and Bargaining in Uganda," Kiel Working Papers 1402, Kiel Institute for the World Economy.
  13. Nicita, Alessandro, 2006. "Export led growth, pro-poor or not? Evidence from Madagascar's textile and apparel industry," Policy Research Working Paper Series 3841, The World Bank.

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