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International Trade and the Gender Wage Gap: New Evidence from India's Manufacturing Sector

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  • Menon, Nidhiya
  • Rodgers, Yana van der Meulen

Abstract

Summary This study examines how increasing competitive forces from India's trade liberalization have affected women's relative wages and employment. Neoclassical theory implies that costly discrimination against female workers should diminish over time with increased competition. We incorporate this idea into a theoretical model of competition and industry concentration and test the model using repeated cross-sections of India's National Sample Survey Organization (NSSO) household survey data merged with trade and production data from 1983 to 2004. Estimates from ordinary least-squares (OLS) and fixed effects regressions at the industry-level indicate that increasing openness to trade is associated with larger wage gaps in India's concentrated manufacturing industries.

Suggested Citation

  • Menon, Nidhiya & Rodgers, Yana van der Meulen, 2009. "International Trade and the Gender Wage Gap: New Evidence from India's Manufacturing Sector," World Development, Elsevier, vol. 37(5), pages 965-981, May.
  • Handle: RePEc:eee:wdevel:v:37:y:2009:i:5:p:965-981
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    Cited by:

    1. Ahmed, Salma & McGillivray, Mark, 2015. "Human Capital, Discrimination, and the Gender Wage Gap in Bangladesh," World Development, Elsevier, vol. 67(C), pages 506-524.
    2. Kucera, David. & Roncolato, Leanne. & von Uexkull, Erik., 2010. "Trade contraction in the global crisis : employment and inequality effects in India and South Africa," ILO Working Papers 994594013402676, International Labour Organization.
    3. Sarra Ben Yahmed, 2012. "Gender Wage Gaps across Skills and Trade Openness," AMSE Working Papers 1232, Aix-Marseille School of Economics, Marseille, France, revised Nov 2012.
    4. Rendall, Michelle, 2013. "Structural Change in Developing Countries: Has it Decreased Gender Inequality?," World Development, Elsevier, vol. 45(C), pages 1-16.
    5. Rachel Heath & Seema Jayachandran, 2016. "The Causes and Consequences of Increased Female Education and Labor Force Participation in Developing Countries," Working Papers id:11434, eSocialSciences.
    6. Mukhopadhyay, Ujjaini & Chaudhuri, Sarbajit, 2011. "Economic liberalization, gender wage inequality and welfare – a theoretical analysis," MPRA Paper 32954, University Library of Munich, Germany.
    7. L. Alan Winters & Antonio Martuscelli, 2014. "Trade Liberalization and Poverty: What Have We Learned in a Decade?," Annual Review of Resource Economics, Annual Reviews, vol. 6(1), pages 493-512, October.
    8. Dammert, Ana C. & Ural Marchand, Beyza & Wan, Chi, 2013. "Gender Wage-Productivity Differentials and Global Integration in China," IZA Discussion Papers 7159, Institute for the Study of Labor (IZA).
    9. Somasree Poddar & Sarbajit Chaudhuri, 2016. "Economic Reforms and Gender-Based Wage Inequality in the Presence of Factor Market Distortions," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 14(2), pages 301-321, December.
    10. Yahmed, Sarra Ben, 2017. "Gender wage discrimination and trade openness. Prejudiced employers in an open industry," ZEW Discussion Papers 17-047, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    11. Gunatilaka, Ramani., 2013. "To work or not to work? : Factors holding women back from market work in Sri Lanka," ILO Working Papers 994838403402676, International Labour Organization.
    12. Nidhiya Menon & Yana van der Meulen Rodgers, 2017. "The Impact of the Minimum Wage on Male and Female Employment and Earnings in India," Asian Development Review, MIT Press, vol. 34(1), pages 28-64, March.
    13. repec:ilo:ilowps:483840 is not listed on IDEAS
    14. Sarra Ben Yahmed, 2012. "Gender Wage Discrimination and Trade Openness. Prejudiced employers in an open industry," Working Papers halshs-00793561, HAL.
    15. Shireen AlAzzawi, 2013. "Did Trade Liberalization Benefit Female Workers? Evidence on Wage and Employment Effects from Egypt," Working Papers 787, Economic Research Forum, revised Oct 2013.
    16. Ana C. Dammert & Beyza Ural Marchand, 2015. "Privatization In China: Technology And Gender In The Manufacturing Sector," Contemporary Economic Policy, Western Economic Association International, vol. 33(2), pages 250-264, April.
    17. Naranpanawa, Athula & Arora, Rashmi, 2014. "Does Trade Liberalization Promote Regional Disparities? Evidence from a Multiregional CGE Model of India," World Development, Elsevier, vol. 64(C), pages 339-349.
    18. Sarra Ben Yahmed, 2012. "Gender Wage Discrimination and Trade Openness," AMSE Working Papers 1233, Aix-Marseille School of Economics, Marseille, France.
    19. Nidhiya Menon & Yana van der Meulen Rodgers, 2010. "Gender Differences in Socioeconomic Status and Health: Evidence from the 2008 Vietnam Household Living Standard Survey," Working Papers 18, Brandeis University, Department of Economics and International Businesss School.
    20. repec:ilo:ilowps:459401 is not listed on IDEAS
    21. Manabu Furuta & Prabir Bhattacharya & Takahiro Sato, 2017. "Effects of Trade Liberalization on the Gender Wage Gap: Evidences from Panel Data of the Indian Manufacturing Sector," Discussion Paper Series DP2017-22, Research Institute for Economics & Business Administration, Kobe University, revised Mar 2018.
    22. Johannes Schwarzer, 2016. "Trade and Employment. An Overview," Discussion Notes 1601, Council on Economic Policies.
    23. Sarra Ben Yahmed, 2012. "Gender Wage Gaps across Skills and Trade Openness," Working Papers halshs-00793559, HAL.
    24. Arora, Tarun, 2015. "Employment-Export Elasticities for the Indian Textile Industry," Working Papers 349, Institute for Social and Economic Change, Bangalore.

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