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International Trade and Gender Wage Discrimination: Evidence from East Asia

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  • Günseli Berik
  • Yana van der Meulen Rodgers
  • Joseph E. Zveglich

Abstract

The paper explores how competition from international trade affects gender wage discrimination in two open economies. According to neoclassical theory, if discrimination is costly, then increased industry competitiveness from international trade lessens the incentive for employers to discriminate against women. This effect should be stronger in concentrated sectors, where employers can use excess profits to cover the costs of discrimination. Alternatively, increased international trade may reduce women's bargaining power to achieve wage gains. Results for Taiwan and Korea indicate that, in contrast to neoclassical theory, competition from foreign trade in concentrated industries is positively associated with wage discrimination against women.

Suggested Citation

  • Günseli Berik & Yana van der Meulen Rodgers & Joseph E. Zveglich, 2004. "International Trade and Gender Wage Discrimination: Evidence from East Asia," Review of Development Economics, Wiley Blackwell, vol. 8(2), pages 237-254, May.
    • Handle: RePEc:bla:rdevec:v:8:y:2004:i:2:p:237-254
    DOI: 10.1111/j.1467-9361.2004.00230.x
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    References listed on IDEAS

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