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Globalization and the gender wage gap

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Author Info
Oostendorp, Remco

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Abstract

There are several theoretical reasons why globalization will have a narrowing as well as widening effect on the gender wage gap, but little is known about the actual impact, except for a number of country studies. The author provides a cross-country study of the impact of globalization on the occupational gender wage gap, based on the rarely used but most far-ranging survey of wages around the world, the International Labour Organization's October Inquiry. This annual survey was started in 1924 and contains a wealth of information on wages and the gender wage gap. For the period 1983-99, there is information on the gender wage gap in 161 narrowly defined occupations in more than 80 countries around the world. The author finds the following: (i) The occupational gender wage gap appears to be narrowing with increases inGDP per capita; (ii) There is a significantly narrowing impact of trade and foreign direct investment (FDI) net inflows on the occupational gender wage gap for low-skill occupations, both in poorer and richer countries, and for high-skill occupations in richer countries; (iii) There is no evidence of a narrowing impact of trade, but there is evidence of a widening impact of FDI net inflows on the high-skill occupational gender wage gap in poorer countries; (iv) Wage-setting institutions have a strong impact on the occupational gender wage gap in richer countries.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3256.

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Date of creation: 01 Apr 2004
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Handle: RePEc:wbk:wbrwps:3256

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Keywords: Environmental Economics&Policies; Gender and Development; Educational Sciences; Housing&Human Habitats; Economic Theory&Research; Housing&Human Habitats; TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT; Economic Theory&Research; Environmental Economics&Policies; Educational Sciences;

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Robbins, Donald & Gindling, T H, 1999. "Trade Liberalization and the Relative Wages for More-Skilled Workers in Costa Rica," Review of Development Economics, Blackwell Publishing, vol. 3(2), pages 140-54, June. [Downloadable!] (restricted)
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  3. Jorge Saba Arbache & Andy Dickerson & Francis Green, 2004. "Trade Liberalisation and Wages in Developing Countries," Economic Journal, Royal Economic Society, vol. 114(493), pages F73-F96, 02. [Downloadable!] (restricted)
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  5. Edwards, Sebastian, 1998. "Openness, Productivity and Growth: What Do We Really Know?," Economic Journal, Royal Economic Society, vol. 108(447), pages 383-98, March. [Downloadable!] (restricted)
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  6. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December. [Downloadable!] (restricted)
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  7. Rodrik, Dani & Subramanian, Arvind & Trebbi, Francesco, 2002. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," CEPR Discussion Papers 3643, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  8. Gordon H. Hanson & Ann Harrison, 1999. "Trade liberalization and wage inequality in Mexico," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 52(2), pages 271-288, January.
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  14. Tzannatos, Zafiris, 1999. "Women and Labor Market Changes in the Global Economy: Growth Helps, Inequalities Hurt and Public Policy Matters," World Development, Elsevier, vol. 27(3), pages 551-569, March. [Downloadable!] (restricted)
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  21. 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)
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  26. repec:rus:hseeco:9982 is not listed on IDEAS
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Doris Weichselbaumer & Rudolf Winter-Ebmer & Martina Zweimüller, 2007. "Market Orientation and Gender Wage Gaps: An International Study," Economics working papers 2007-12, Department of Economics, Johannes Kepler University Linz, Austria. [Downloadable!]
    Other versions:
  2. Stephanie Seguino & Caren Grown, 2006. "Gender equity and globalization: macroeconomic policy for developing countries," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(8), pages 1081-1104. [Downloadable!]
    Other versions:
  3. Busse, Matthias & Spielmann, Christian, 2005. "Gender Inequality and Trade," Discussion Paper Series 26218, Hamburg Institute of International Economics. [Downloadable!]
    Other versions:
  4. Stephanie Seguino, 2005. "Gender Inequality in a Globalizing World," Industrial Organization 0507005, EconWPA. [Downloadable!]
    Other versions:
  5. Ulla Lehmijoki & Tapio Palokangas, 2009. "Population growth overshooting and trade in developing countries," Journal of Population Economics, Springer, vol. 22(1), pages 43-56, January. [Downloadable!] (restricted)
    Other versions:
  6. Barry Reilly & Puja Vasudeva Dutta, 2005. "The Gender Pay Gap and Trade Liberalisation: Evidence for India," PRUS Working Papers 32, Poverty Research Unit at Sussex, University of Sussex. [Downloadable!]
  7. Fatma El-Hamidi & Mona Said, 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. Fatma El-Hamidi, 2007. "The Effect of Trade Liberalization on Industrial Segregation and Wage Determination: Evidence from Egypt," Working Papers 341, University of Pittsburgh, Department of Economics, revised Feb 2008.
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