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Does Trade Promote Gender Wage Equity?: Evidence from East Asia

Author

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  • Gunseli Berik
  • Yana van der Meulen Rodgers
  • Joseph E. Zveglich Jr.

Abstract

This study explores the impact of competition from international trade on the gender wage gap in Taiwan and South Korea between 1980 and 1999. The dynamic implications of Becker's 1959 theory of discrimination lead one to expect that increased competition from international trade reduces the incentive for employers to discriminate against women. This effect should be more pronounced in concentrated sectors of the economy, where employers can use excess profits to cover the costs of discrimination. Alternatively, wage discrimination may increase with growing trade limiting women's ability to achieve wage gains. The empirical strategy controls for differences in market structure across industries in order to isolate the effect of competition from international trade. Estimation results are not consistent with Becker's theory, as greater international competition in concentrated sectors is associated with larger wage gaps between men and women.

Suggested Citation

  • Gunseli Berik & Yana van der Meulen Rodgers & Joseph E. Zveglich Jr., 2003. "Does Trade Promote Gender Wage Equity?: Evidence from East Asia," Economics Working Paper Archive wp_373, Levy Economics Institute.
  • Handle: RePEc:lev:wrkpap:wp_373
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    References listed on IDEAS

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    Cited by:

    1. Maarten Vendrik & Christiane Schwieren, 2010. "Identification, screening and stereotyping in labour market discrimination," Journal of Economics, Springer, vol. 99(2), pages 141-171, March.
    2. Doris Weichselbaumer & Rudolf Winter-Ebmer, 2007. "The effects of competition and equal treatment laws on gender wage differentials [‘Models of job discrimination’]," Economic Policy, CEPR;CES;MSH, vol. 22(50), pages 236-287.
    3. 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.
    4. Oscar Molina Tejerina & Luis Castro Peñarrieta, 2020. "Unexplained Wage Gaps in the Tradable and Nontradable Sectors: Cross-Sectional Evidence by Gender in Bolivia," Investigación & Desarrollo 0120, Universidad Privada Boliviana, revised Nov 2020.
    5. Michael W. Klein & Christoph Moser & Dieter M. Urban, 2010. "The Contribution of Trade to Wage Inequality: The Role of Skill, Gender, and Nationality," NBER Working Papers 15985, National Bureau of Economic Research, Inc.
    6. repec:ilo:ilowps:370974 is not listed on IDEAS
    7. 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).
    8. Louise Patterson & Brandon Walcutt, 2017. "Review of Korean workplace gender policy literature from 1989 to 2014," Asia Pacific Business Review, Taylor & Francis Journals, vol. 23(5), pages 713-733, October.
    9. Farha Fatema & Zhaohua Li & Mohammad Monirul Islam, 2018. "Trade Liberalization and Gender Wage Inequality: Panel ARDL Approach for Emerging Economies," International Journal of Economics and Financial Issues, Econjournals, vol. 8(1), pages 64-70.
    10. Anderson, Edward, 2005. "Openness and inequality in developing countries: A review of theory and recent evidence," World Development, Elsevier, vol. 33(7), pages 1045-1063, July.
    11. Seguino, Stephanie, 2006. "The great equalizer?: Globalization effects on gender equality in Latin America and the Caribbean," MPRA Paper 6509, University Library of Munich, Germany.
    12. Louise Patterson & Brandon Walcutt, 2013. "Korean workplace gender discrimination research analysis: a review of the literature from 1990 to 2010," Asia Pacific Business Review, Taylor & Francis Journals, vol. 19(1), pages 85-101, January.
    13. Cagatay, Nilüfer. & Ertürk, Korkuk., 2004. "Gender and globalization : a macroeconomic perspective," ILO Working Papers 993709743402676, International Labour Organization.

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    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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