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Gender, Informal Employment and Trade Liberalization in Mexico

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  • Pamela Bombarda
  • Sarra Ben Yahmed

    () (Université de Cergy-Pontoise, THEMA)

Abstract

We study how trade liberalization affects labour reallocation in formal and informal jobs across gender. We link the Mexican labour force survey with data on tariffs at the 4-digit level from 1993 to 2001, and find that a tariff reduction increases the probability of holding a formal job for both men and women within industries. Constructing a regional tarif measure, we show that local effects of changes in trade policy differ between gender and industries. At the regional level, trade liberalization decreases the probability of working formally for women, but increases the probability of working formally for high- skilled men. Then, controlling for sectoral differences, we find that in the manufacturing sector, men benefit more from the formalization of jobs induced by trade liberalization. While in the service sector, workers, especially low- skilled women, have higher chances to work informally.

Suggested Citation

  • Pamela Bombarda & Sarra Ben Yahmed, 2017. "Gender, Informal Employment and Trade Liberalization in Mexico," THEMA Working Papers 2017-03, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
  • Handle: RePEc:ema:worpap:2017-03
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    Cited by:

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    2. Gyasi, Genevieve, 2020. "The Impact of Trade Agreement Policy on Employment," MPRA Paper 101307, University Library of Munich, Germany.
    3. Vandenberg, Paul, 2017. "Can Trade Help Achieve the Employment Targets of the Sustainable Development Goals?," ADBI Working Papers 650, Asian Development Bank Institute.
    4. Krisztina Kis-Katos & Janneke Pieters & Robert Sparrow, 2018. "Globalization and Social Change: Gender-Specific Effects of Trade Liberalization in Indonesia," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 66(4), pages 763-793, December.

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    More about this item

    Keywords

    Informality; trade liberalization; gender; Mexico.;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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