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Commodity price shocks and the gender wage gap: Evidence from the Metal Mining Prices Super-Cycle in Chile

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  • Chávez, Alicia
  • Rodríguez-Puello, Gabriel

Abstract

This paper analyzes the local impact of a natural resource shock on female and male wages as well as the gender wage gap. We contrast three hypotheses using the Dutch disease theory and gender-based segregation patterns in the labor market. Using household level data aggregated at a municipality-level from 2000 to 2015, we examine the case of Chile that was exposed to the Metal Mining Prices Super-Cycle between 2003 and 2011. We exploit the spatial heterogeneity in the exposure to the shock, and find a positive and significant impact on wages for both men and women. We also provide evidence of a significant reduction in the gender wage gap in municipalities more exposed to the commodity shock in comparison to municipalities with less exposure. In addition, we use spatial econometric specifications and find evidence suggesting the existence of spatial spillovers between neighboring municipalities.

Suggested Citation

  • Chávez, Alicia & Rodríguez-Puello, Gabriel, 2022. "Commodity price shocks and the gender wage gap: Evidence from the Metal Mining Prices Super-Cycle in Chile," Resources Policy, Elsevier, vol. 76(C).
    • Handle: RePEc:eee:jrpoli:v:76:y:2022:i:c:s0301420721005043
    DOI: 10.1016/j.resourpol.2021.102497
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    More about this item

    Keywords

    Wages; Gender; Shocks; Natural resources; Chile;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)

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