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Does trade liberalization narrow the gender wage gap? The role of sectoral mobility

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  • Brussevich, Masha

Abstract

This paper analyzes the impact of import competition and dynamic labor adjustment on gender outcomes in wages and welfare in the U.S.. I consider a dynamic model of sectoral choice and structurally estimate mobility costs using data from the Current Population Survey and O*NET. A measure of intersectoral distance in task characteristics facilitates the structural estimation of switching costs that vary by gender and across sectors. In a set of trade shock simulations, an import competition shock in the manufacturing sector disproportionately affects male employment and wages. Since manufacturing is male labor intensive and men face higher exit costs from manufacturing, wage and welfare gains from trade are higher for women than men.

Suggested Citation

  • Brussevich, Masha, 2018. "Does trade liberalization narrow the gender wage gap? The role of sectoral mobility," European Economic Review, Elsevier, vol. 109(C), pages 305-333.
  • Handle: RePEc:eee:eecrev:v:109:y:2018:i:c:p:305-333
    DOI: 10.1016/j.euroecorev.2018.02.007
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    Cited by:

    1. Orkoh, Emmanuel & Stolzenburg, Victor, 2020. "Gender-specific differences in geographical mobility: Evidence from Ghana," WTO Staff Working Papers ERSD-2020-01, World Trade Organization (WTO), Economic Research and Statistics Division.
    2. Cozzi, Guido & Francesconi, Marco & Lundberg, Shelly & Mantovan, Noemi & Sauer, Robert M., 2018. "Advancing the economics of gender: New insights and a roadmap for the future," European Economic Review, Elsevier, vol. 109(C), pages 1-8.
    3. Keller, Wolfgang & Utar, Hale, 2018. "Globalization, Gender, and the Family," CEPR Discussion Papers 13317, C.E.P.R. Discussion Papers.
    4. Mizuki Komura & Hikaru Ogawa, 2019. "Capital market integration and gender inequality," Review of Development Economics, Wiley Blackwell, vol. 23(3), pages 1387-1413, August.

    More about this item

    Keywords

    Import competition; Gender wage gap; Sectoral mobility costs; Gravity equation;

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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