IDEAS home Printed from https://ideas.repec.org/p/hhs/lunewp/2022_013.html
   My bibliography  Save this paper

Bargaining for Trade: When Exporting Becomes Detrimental for Female Wages

Author

Listed:
  • Halvarsson, Daniel

    (The Ratio Institute)

  • Lark, Olga

    (Department of Economics, Lund University)

  • Tingvall, Patrik

    (The National Board of Trade Sweden, Södertörn University)

  • Videnord, Josefin

    (Uppsala University)

Abstract

In this paper we study the link between globalization of firms and gender inequality. Specifically, we examine how the need for interpersonal contacts in trade and gender-specific differences in negotiations are related to the gender wage gap. Our key finding is that export of goods that are intensive in interpersonal contacts widens the gender wage gap. The effect is robust across various specifications and is most pronounced for domestic exporting firms, which do not trade within multinational corporations but with external foreign partners, where the contracting problem is most distinct. We ascribe this result to a male comparative advantage in bargaining.

Suggested Citation

  • Halvarsson, Daniel & Lark, Olga & Tingvall, Patrik & Videnord, Josefin, 2022. "Bargaining for Trade: When Exporting Becomes Detrimental for Female Wages," Working Papers 2022:13, Lund University, Department of Economics.
    • Handle: RePEc:hhs:lunewp:2022_013
    as

    Download full text from publisher

    File URL: https://lucris.lub.lu.se/ws/portalfiles/portal/173629876/WP22_13
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bengt Söderlund & Patrik Tingvall, 2014. "Dynamic effects of institutions on firm-level exports," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(2), pages 277-308, May.
    2. Ferguson, Shon & Formai, Sara, 2013. "Institution-driven comparative advantage and organizational choice," Journal of International Economics, Elsevier, vol. 90(1), pages 193-200.
    3. Catherine C. Eckel & Philip J. Grossman, 2002. "Sex Differences and Statistical Stereotyping in Attitudes Toward Financial Risk," Monash Economics Working Papers archive-03, Monash University, Department of Economics.
    4. L. Rachel Ngai & Barbara Petrongolo, 2017. "Gender Gaps and the Rise of the Service Economy," American Economic Journal: Macroeconomics, American Economic Association, vol. 9(4), pages 1-44, October.
    5. Carlo Altomonte & Gabor Békés, 2009. "Trade Complexity and Productivity," KITeS Working Papers 016, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Jul 2009.
    6. Claudia Olivetti & Barbara Petrongolo, 2016. "The Evolution of Gender Gaps in Industrialized Countries," Annual Review of Economics, Annual Reviews, vol. 8(1), pages 405-434, October.
    7. Mikael Carlsson & Julián Messina & Oskar Nordström Skans, 2016. "Wage Adjustment and Productivity Shocks," Economic Journal, Royal Economic Society, vol. 126(595), pages 1739-1773, September.
    8. Tang, Heiwai & Zhang, Yifan, 2021. "Do multinationals transfer culture? Evidence on female employment in China," Journal of International Economics, Elsevier, vol. 133(C).
    9. Nathan Nunn, 2007. "Relationship-Specificity, Incomplete Contracts, and the Pattern of Trade," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(2), pages 569-600.
    10. Claudia Olivetti & Barbara Petrongolo, 2016. "The Evolution of Gender Gaps in Industrialized Countries," Annual Review of Economics, Annual Reviews, vol. 8(1), pages 405-434, October.
    11. David Card & Francesco Devicienti & Agata Maida, 2014. "Rent-sharing, Holdup, and Wages: Evidence from Matched Panel Data," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(1), pages 84-111.
    12. Lex Borghans & Bas Ter Weel & Bruce A. Weinberg, 2014. "People Skills and the Labor-Market Outcomes of Underrepresented Groups," ILR Review, Cornell University, ILR School, vol. 67(2), pages 287-334, April.
    13. Luigi Guiso & Luigi Pistaferri & Fabiano Schivardi, 2005. "Insurance within the Firm," Journal of Political Economy, University of Chicago Press, vol. 113(5), pages 1054-1087, October.
    14. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
    15. Blanes I Vidal, Jordi, 2020. "Face-to-face communication in organizations," LSE Research Online Documents on Economics 106580, London School of Economics and Political Science, LSE Library.
    16. Alan Manning & Barbara Petrongolo, 2008. "The Part‐Time Pay Penalty for Women in Britain," Economic Journal, Royal Economic Society, vol. 118(526), pages 28-51, February.
    17. repec:eee:labchp:v:3:y:1999:i:pc:p:3143-3259 is not listed on IDEAS
    18. Daron Acemoglu & Fabrizio Zilibotti, 2001. "Productivity Differences," The Quarterly Journal of Economics, Oxford University Press, vol. 116(2), pages 563-606.
    19. Martin Strieborny & Madina Kukenova, 2016. "Investment in Relationship-Specific Assets: Does Finance Matter?," Review of Finance, European Finance Association, vol. 20(4), pages 1487-1515.
    20. David Card & Ana Rute Cardoso & Patrick Kline, 2016. "Bargaining, Sorting, and the Gender Wage Gap: Quantifying the Impact of Firms on the Relative Pay of Women," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(2), pages 633-686.
    21. Francine D. Blau & Lawrence M. Kahn, 2000. "Gender Differences in Pay," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 75-99, Fall.
    22. Naomi Kodama & Beata S. Javorcik & Yukiko Abe, 2018. "Transplanting corporate culture across international borders: Foreign direct investment and female employment in Japan," The World Economy, Wiley Blackwell, vol. 41(5), pages 1148-1165, May.
    23. Claudia Goldin, 2014. "A Grand Gender Convergence: Its Last Chapter," American Economic Review, American Economic Association, vol. 104(4), pages 1091-1119, April.
    24. Bøler, Esther Ann & Javorcik, Beata & Ulltveit-Moe, Karen Helene, 2018. "Working across time zones: Exporters and the gender wage gap," Journal of International Economics, Elsevier, vol. 111(C), pages 122-133.
    25. Muriel Niederle & Lise Vesterlund, 2007. "Do Women Shy Away From Competition? Do Men Compete Too Much?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(3), pages 1067-1101.
    26. Andreas Born & Eva Ranehill & Anna Sandberg, 2022. "Gender and Willingness to Lead: Does the Gender Composition of Teams Matter?," The Review of Economics and Statistics, MIT Press, vol. 104(2), pages 259-275, May.
    27. Juhn, Chinhui & Ujhelyi, Gergely & Villegas-Sanchez, Carolina, 2014. "Men, women, and machines: How trade impacts gender inequality," Journal of Development Economics, Elsevier, vol. 106(C), pages 179-193.
    28. Arnaud Costinot & Jonathan Vogel, 2010. "Matching and Inequality in the World Economy," Journal of Political Economy, University of Chicago Press, vol. 118(4), pages 747-786, August.
    29. Albrecht, James & Bronson, Mary Ann & Thoursie, Peter Skogman & Vroman, Susan, 2018. "The career dynamics of high-skilled women and men: Evidence from Sweden," European Economic Review, Elsevier, vol. 105(C), pages 83-102.
    30. Nekby, Lena, 2003. "Gender differences in rent sharing and its implications for the gender wage gap, evidence from Sweden," Economics Letters, Elsevier, vol. 81(3), pages 403-410, December.
    31. Rainer Lanz & Sébastien Miroudot, 2011. "Intra-Firm Trade: Patterns, Determinants and Policy Implications," OECD Trade Policy Papers 114, OECD Publishing.
    32. Benjamin Bruns, 2019. "Changes in Workplace Heterogeneity and How They Widen the Gender Wage Gap," American Economic Journal: Applied Economics, American Economic Association, vol. 11(2), pages 74-113, April.
    33. Bonfiglioli, Alessandra & De Pace, Federica, 2021. "Export, Female Comparative Advantage and the Gender Wage Gap," CEPR Discussion Papers 15801, C.E.P.R. Discussion Papers.
    34. Halvarsson, Daniel & Lark, Olga & Gustavsson Tingvall, Patrik, 2022. "Foreign Ownership and Transferring of Gender Norms," Working Paper Series 1433, Research Institute of Industrial Economics.
    35. Uri Gneezy & Muriel Niederle & Aldo Rustichini, 2003. "Performance in Competitive Environments: Gender Differences," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(3), pages 1049-1074.
    36. Alexandra Spitz-Oener, 2006. "Technical Change, Job Tasks, and Rising Educational Demands: Looking outside the Wage Structure," Journal of Labor Economics, University of Chicago Press, vol. 24(2), pages 235-270, April.
    37. Rauch, James E., 1999. "Networks versus markets in international trade," Journal of International Economics, Elsevier, vol. 48(1), pages 7-35, June.
    38. Bartel, Ann & Lach, Saul & Sicherman, Nachum, 2005. "Outsourcing and Technological Change," CEPR Discussion Papers 5082, C.E.P.R. Discussion Papers.
    39. Altonji, Joseph G. & Blank, Rebecca M., 1999. "Race and gender in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 48, pages 3143-3259, Elsevier.
    40. Halvarsson, Daniel & Lark, Olga & Gustavsson Tingvall, Patrik, 2022. "Foreign Ownership and Transferring of Gender Norms," Working Papers 2022:6, Lund University, Department of Economics.
    41. Halvarsson, Daniel & Lark, Ola & Gustavsson Tingvall, Patrik, 2022. "Ratio Working Paper No. 354: Foreign Ownership and Transferring of Gender Norms," Ratio Working Papers 354, The Ratio Institute.
    42. Bowles, Hannah Riley & Babcock, Linda & McGinn, Kathleen L., 2005. "Constraints and Triggers: Situational Mechanics of Gender in Negotiation," Working Paper Series rwp05-051, Harvard University, John F. Kennedy School of Government.
    43. Walters, Amy E. & Stuhlmacher, Alice F. & Meyer, Lia L., 1998. "Gender and Negotiator Competitiveness: A Meta-analysis," Organizational Behavior and Human Decision Processes, Elsevier, vol. 76(1), pages 1-29, October.
    44. Rachel Croson & Uri Gneezy, 2009. "Gender Differences in Preferences," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 448-474, June.
    45. Carlo Altomonte & Gabor Békés, 2009. "Trade Complexity and Productivity," KITeS Working Papers 016, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Jul 2009.
    46. Lorenzo Casaburi & Valeria Gattai, 2009. "Why FDI? An Empirical Assessment Based on Contractual Incompleteness and Dissipation of Intangible Assets," Working Papers 164, University of Milano-Bicocca, Department of Economics, revised Jul 2009.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lark, Olga & Videnord, Josefin, 2023. "Do Exporters Import Gender Inequality?," Working Papers 2023:6, Lund University, Department of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Halvarsson, Daniel & Lark, Olga & Tingvall, Patrik & Videnord, Josefin, 2022. "Bargaining for Trade: When Exporting Becomes Detrimental for Female Wages," Working Paper Series 1437, Research Institute of Industrial Economics.
    2. Halvarsson, Daniel & Lark, Olga & Tingvall, Patrik & Videnord, Josefin, 2022. "Bargaining for Trade: When Exporting Becomes Detrimental for Female Wages," Ratio Working Papers 361, The Ratio Institute.
    3. Lark, Olga & Videnord, Josefin, 2023. "Do Exporters Import Gender Inequality?," Working Papers 2023:6, Lund University, Department of Economics.
    4. Halvarsson, Daniel & Lark, Olga & Gustavsson Tingvall, Patrik, 2022. "Foreign Ownership and Transferring of Gender Norms," Working Paper Series 1433, Research Institute of Industrial Economics.
    5. Halvarsson, Daniel & Lark, Olga & Gustavsson Tingvall, Patrik, 2022. "Foreign Ownership and Transferring of Gender Norms," Working Papers 2022:6, Lund University, Department of Economics.
    6. Alessandra Bonfiglioli & Federica de Pace, 2021. "Export, Female Comparative Advantage and the Gender Wage Gap," Working Papers 925, Queen Mary University of London, School of Economics and Finance.
    7. Casarico, A. & Lattanzio, S., 2019. "What Firms Do: Gender Inequality in Linked Employer-Employee Data," Cambridge Working Papers in Economics 1966, Faculty of Economics, University of Cambridge.
    8. Popov, Alexander, 2022. "The division of spoils in a booming industry," Journal of Economic Behavior & Organization, Elsevier, vol. 198(C), pages 341-369.
    9. Chen, Yunsi & Hu, Dezhuang, 2023. "Why are exporters more gender-friendly? Evidence from China," Economic Modelling, Elsevier, vol. 118(C).
    10. Patrik Tingvall & Andreas Poldahl, 2012. "Determinants of Firm R&D: The Role of Relationship-Specific Interactions for R&D Spillovers," Journal of Industry, Competition and Trade, Springer, vol. 12(4), pages 395-411, December.
    11. Grace Lordan & Jörn‐Steffen Pischke, 2022. "Does Rosie Like Riveting? Male and Female Occupational Choices," Economica, London School of Economics and Political Science, vol. 89(353), pages 110-130, January.
    12. Popov, Alexander & Zaharia, Sonia, 2019. "Credit market competition and the gender gap in labor force participation: Evidence from local markets," European Economic Review, Elsevier, vol. 115(C), pages 25-59.
    13. Michael Baker & Kirsten Cornelson, 2018. "Gender-Based Occupational Segregation and Sex Differences in Sensory, Motor, and Spatial Aptitudes," Demography, Springer;Population Association of America (PAA), vol. 55(5), pages 1749-1775, October.
    14. Westerberg, Hans Seerar, 2014. "The Return to R&D and Seller-buyer Interactions: A Quantile Regression Approach," Ratio Working Papers 231, The Ratio Institute.
    15. Priit Vahter & Jaan Masso, 2019. "The contribution of multinationals to wage inequality: foreign ownership and the gender pay gap," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 155(1), pages 105-148, February.
    16. Estrella Gomez-Herrera & Frank Müller-Langer, 2019. "Is There a Gender Wage Gap in Online Labor Markets? Evidence from Over 250,000 Projects and 2.5 Million Wage Bill Proposals," CESifo Working Paper Series 7779, CESifo.
    17. Bertrand, Marianne, 2011. "New Perspectives on Gender," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 17, pages 1543-1590, Elsevier.
    18. Cortes, Patricia & Pan, Jessica, 2017. "Occupation and Gender," IZA Discussion Papers 10672, Institute of Labor Economics (IZA).
    19. Claudia Olivetti & Barbara Petrongolo, 2016. "The Evolution of Gender Gaps in Industrialized Countries," Annual Review of Economics, Annual Reviews, vol. 8(1), pages 405-434, October.
    20. Inés P. Murillo & Hipólito Simón, 2014. "La Gran Recesión y el diferencial salarial por género en España," Hacienda Pública Española / Review of Public Economics, IEF, vol. 208(1), pages 39-76, March.

    More about this item

    Keywords

    Export; Gender wage gap; Gender inequality; Contract intensity; Interpersonal contacts; International trade;
    All these keywords.

    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
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:lunewp:2022_013. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Prakriti Thami (email available below). General contact details of provider: https://edirc.repec.org/data/delunse.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.