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Does international trade impact wage discrimination?

Author

Listed:
  • Jongsung Kim

    (Bryant University)

  • Edinaldo Tebaldi

    (Bryant University)

Abstract

This paper uses microdata from the 2006 Current Population Survey (CPS) combined with data from the U.S. International Trade Commission (USITC) and the Bureau of Economic Analysis (BEA) to evaluate the degree to which international trade affects wage discrimination. The paper's findings contribute to the literature in two fronts. First, it shows that empirical analyses that fail to properly account for gender or race differences might produce unreliable results regarding the impact of international trade (and/or competition) on the race/gender wage gap. Second, this paper provides evidence that export intensiveness contributes to reduce the overall gender wage gap, but adversely affects the wages of Hispanic women when compared to white non-Hispanic women. In addition, import penetration is found to increase the wage gap of male Hispanics compared to male white non-Hispanics.

Suggested Citation

  • Jongsung Kim & Edinaldo Tebaldi, 2011. "Does international trade impact wage discrimination?," Economics Bulletin, AccessEcon, vol. 31(3), pages 2709-2724.
    • Handle: RePEc:ebl:ecbull:eb-11-00509
    as

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    References listed on IDEAS

    as
    1. Feenstra, Robert C. (ed.), 2000. "The Impact of International Trade on Wages," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226239637.
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    3. Edinaldo Tebaldi & Jongsung Kim, 2010. "Two Tales on the Returns to Education: The Impact of Trade on Wages," Review of Development Economics, Wiley Blackwell, vol. 14(4), pages 768-782, November.
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    6. Azim Essaji & Gregory Sweeney & Alexandros Kotsopoulos, 2010. "Equality through exposure to imports? International trade and the racial wage gap," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 13(4), pages 313-323.
    7. 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.
    8. Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-338, May.
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    Keywords

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    JEL classification:

    • F1 - International Economics - - Trade
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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