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Globalization and Social Change: Gender-Specific Effects of Trade Liberalization in Indonesia

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  • Kis-Katos, Krisztina

    (University of Goettingen)

  • Pieters, Janneke

    (Wageningen University)

  • Sparrow, Robert

    (Wageningen University)

Abstract

We analyse the gender-specific effects of trade liberalization on work participation and hours of work and primary participation in domestic duties in Indonesia. We show that female work participation increased in relative terms in regions that were more exposed to input tariff reductions, whereas the effects of output tariff changes were much less pronounced. When looking at the potential channels for these effects, we find that in Indonesia the structure of initial protection was considerably more female-biased than skill-biased and hence reductions in input tariffs have especially benefited sectors with a larger initial concentration of female workers. This has led to a relative expansion of more female intensive sectors as well as to a decrease in gender segregation of occupation, especially among the low skilled. We also find that labour markets are a key channel through which trade liberalization affects marriage decisions. Delayed marriage among both sexes is related to input tariff liberalization, especially in the younger cohorts, as the improved labour opportunities for women reduce the returns to marriage.

Suggested Citation

  • Kis-Katos, Krisztina & Pieters, Janneke & Sparrow, Robert, 2017. "Globalization and Social Change: Gender-Specific Effects of Trade Liberalization in Indonesia," IZA Discussion Papers 10552, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp10552
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    References listed on IDEAS

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    Cited by:

    1. Pieters, Janneke & Klasen, Stephan, 2020. "Randomization for women’s economic empowerment? Lessons and limitations of randomized experiments," World Development, Elsevier, vol. 127(C).
    2. Keller, Wolfgang & Utar, Hale, 2018. "Globalization, Gender, and the Family," CEPR Discussion Papers 13317, C.E.P.R. Discussion Papers.
    3. Klasen, Stephan, 2020. "From ‘MeToo’ to Boko Haram: A survey of levels and trends of gender inequality in the world," World Development, Elsevier, vol. 128(C).
    4. , Aisdl, 2018. "The role of gender on the effects of Indonesian manpower skills on their competition readiness/preparedness," OSF Preprints hvyg8, Center for Open Science.
    5. Ackah, Charles Godfred & Görg, Holger & Hanley, Aoife & Hornok, Cecília, 2020. "Why are Africa's female entrepreneurs not playing the export game? Evidence from Ghana," Kiel Working Papers 2168, Kiel Institute for the World Economy (IfW Kiel).
    6. Danzer, Alexander M. & Grundke, Robert, 2020. "Export price shocks and rural labor markets: The role of labor market distortions," Journal of Development Economics, Elsevier, vol. 145(C).
    7. Johannesson, Louise & Kyvik Nordås, Hildegunn, 2020. "Gender and Labour Market Adjustment to Trade: The Case of India," Working Paper Series 1348, Research Institute of Industrial Economics.
    8. Ashmita Gupta, 2021. "Effect of Trade Liberalization on Gender Inequality: The Case of India," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 69(4), pages 682-720, December.
    9. Louise Johannesson & Hildegunn Kyvik Nordås, 2021. "Services Trade: The Great Gender Equaliser?," Foreign Trade Review, , vol. 56(3), pages 341-363, August.
    10. Laura Barros & Manuel Santos Silva, 2019. "#EleNão: Economic crisis, the political gender gap, and the election of Bolsonaro," Ibero America Institute for Econ. Research (IAI) Discussion Papers 242, Ibero-America Institute for Economic Research.
    11. SASAHARA Akira & MORI Hiroaki, 2021. "The Effects of Trade on the Gender Gaps: A Model-based Quantitative Investigation," Discussion papers 21076, Research Institute of Economy, Trade and Industry (RIETI).
    12. Genthner, Robert & Kis-Katos, Krisztina, 2020. "Local labor market effects of FDI regulation in Indonesia," VfS Annual Conference 2020 (Virtual Conference): Gender Economics 224524, Verein für Socialpolitik / German Economic Association.

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    More about this item

    Keywords

    labour force participation; gender inequality; marriage; trade liberalization; Indonesia;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • 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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