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Chinese Import Competition and Gendered Labor Market Outcomes: Evidence from Ethiopian Firm-Level Data

Author

Listed:
  • Sylvanus Kwaku
  • Ruby Elorm
  • Yohannes Ayele

Abstract

In this paper, we analyse the relationship between Chinese import competition and gendered labor market outcomes within the context of a developing country. To do this, we merge a rich manufacturing firm-level panel data set from Ethiopia with trade data covering the years 1997–2010. Thus, we map out the effect of trade shocks from import surges on labor force participation and compensation, decomposed by gender. Results from the study show that rising import competition from China had a heterogeneous effect on female and male labor market outcomes. Import competition from China is associated with a negative and statistically significant effect on female employment, but not male employment. Looking at workers’ occupation, we find that for production workers import competition is adversely related with female employment outcomes while there is no statistically significant association with employment of administrative workers. For wage inequality, male wages in general are negatively associated with import competition, while we found no effect on female wages.

Suggested Citation

  • Sylvanus Kwaku & Ruby Elorm & Yohannes Ayele, 2023. "Chinese Import Competition and Gendered Labor Market Outcomes: Evidence from Ethiopian Firm-Level Data," Journal of African Economies, Centre for the Study of African Economies, vol. 32(5), pages 547-571.
  • Handle: RePEc:oup:jafrec:v:32:y:2023:i:5:p:547-571.
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    File URL: http://hdl.handle.net/10.1093/jae/ejac026
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    More about this item

    Keywords

    import competition; gender; employment; wages; Ethiopia; China; JEL classification: F66; F14; J16;
    All these keywords.

    JEL classification:

    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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