Economic liberalization, gender wage inequality and welfare – a theoretical analysis
The paper develops a 3-sector general equilibrium model appropriate for economies with female labour oriented export sector to examine the effects of economic liberalization policies on gender based wage inequality. It is assumed that there exist disparities in efficiencies between male and female labour due to skewed access to education and health, and differences in their spending patterns leading to differential effects of respective wages on their nutrition. The results indicate that tariff cut may reduce gender wage inequality, but may have detrimental effects on welfare; while foreign capital inflow may accentuate the inequality, despite improving the welfare of the economy. However, government policies to increase the provision of education and health have favourable effects on gender wage inequality but may be welfare deteriorating. Thus, the paper provides a theoretical explanation to empirical evidences of diverse effects of liberalization on gender wage inequality and explains the possibility of a trade-off between gender inequality and social welfare.
|Date of creation:||20 Aug 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Haddad, Lawrence & Hoddinott, John & Alderman, Harold & DEC, 1994. "Intrahousehold resource allocation : an overview," Policy Research Working Paper Series 1255, The World Bank.
- Marjit, Sugata & Beladi, Seyed Abdolhamid, 1997.
"Protection and the gainful effects of foreign capital,"
Discussion Papers, Series II
334, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
- Marjit, Sugata & Beladi, Hamid, 1996. "Protection and the gainful effects of foreign capital," Economics Letters, Elsevier, vol. 53(3), pages 311-316, December.
- Hazarika, Gautam & Otero, Rafael, 2004. "Foreign Trade and the Gender Earnings Differential in Urban Mexico," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 19, pages 353-373.
- Bliss, Christopher & Stern, Nicholas, 1978. "Productivity, wages and nutrition : Part I: the theory," Journal of Development Economics, Elsevier, vol. 5(4), pages 331-362, December.
- Joseph G. Altonji & Fumio Hayashi & Laurence J. Kotlikoff, 1989.
"Is the Extended Family Altruistically Linked? Direct Tests Using Micro Data,"
NBER Working Papers
3046, National Bureau of Economic Research, Inc.
- Altonji, Joseph G & Hayashi, Fumio & Kotlikoff, Laurence J, 1992. "Is the Extended Family Altruistically Linked? Direct Tests Using Micro Data," American Economic Review, American Economic Association, vol. 82(5), pages 1177-98, December.
- Sarbajit Chaudhuri, 2005. "Labour Market Distortion, Technology Transfer And Gainful Effects Of Foreign Capital," Manchester School, University of Manchester, vol. 73(2), pages 214-227, 03.
- Hoque, Serajul, 2005. "The impact of tariff reduction on Bangladesh economy: a computable general equilibrium assessment," MPRA Paper 16246, University Library of Munich, Germany.
- Cheolsung Park, 2001. "Is Extended Family in Low-Income Countries Altruistically Linked?," Departmental Working Papers wp0107, National University of Singapore, Department of Economics.
- Chamarbagwala, Rubiana, 2006. "Economic Liberalization and Wage Inequality in India," World Development, Elsevier, vol. 34(12), pages 1997-2015, December.
- Brecher, Richard A. & Diaz Alejandro, Carlos F., 1977. "Tariffs, foreign capital and immiserizing growth," Journal of International Economics, Elsevier, vol. 7(4), pages 317-322, November.
- Oostendorp, Remco, 2004.
"Globalization and the gender wage gap,"
Policy Research Working Paper Series
3256, The World Bank.
- Elissa Braunstein & Mark Brenner, 2007. "Foreign direct investment and gendered wages in urban China," Feminist Economics, Taylor & Francis Journals, vol. 13(3-4), pages 213-237.
- Ramachandran, Nira, 2006. "Women and Food Security in South Asia: Current Issues and Emerging Concerns," Working Paper Series RP2006/131, World Institute for Development Economic Research (UNU-WIDER).
- repec:oup:qjecon:v:117:y:2002:i:3:p:963-995 is not listed on IDEAS
- Menon, Nidhiya & Rodgers, Yana van der Meulen, 2009. "International Trade and the Gender Wage Gap: New Evidence from India's Manufacturing Sector," World Development, Elsevier, vol. 37(5), pages 965-981, May.
- Sarbajit Chaudhuri & Shigemi Yabuuchi & Ujjaini Mukhopadhyay, 2006. "Inflow Of Foreign Capital And Trade Liberalization In A Model With An Informal Sector And Urban Unemployment," Pacific Economic Review, Wiley Blackwell, vol. 11(1), pages 87-103, 02.
- Chaudhuri, Sarbajit, 2007.
"Foreign capital, welfare and urban unemployment in the presence of agricultural dualism,"
Japan and the World Economy,
Elsevier, vol. 19(2), pages 149-165, March.
- Sarbajit Chaudhuri, 2005. "Foreign Capital, Welfare And Urban Unemployment In The Presence Of Agricultural Dualism," International Trade 0510010, EconWPA.
- Gunseli Berik, 2000. "Mature Export-Led Growth and Gender Wage Inequality in Taiwan," Feminist Economics, Taylor & Francis Journals, vol. 6(3), pages 1-26.
- Barry Reilly & Puja Vasudeva Dutta, 2005. "The Gender Pay Gap and Trade Liberalisation: Evidence for India," PRUS Working Papers 32, Poverty Research Unit at Sussex, University of Sussex.
- Kusago, Takayoshi & Barham, Bradford L., 2001. "Preference Heterogeneity, Power, and Intrahousehold Decision-Making in Rural Malaysia," World Development, Elsevier, vol. 29(7), pages 1237-1256, July.
- G¸nseli Berik & Yana van der Meulen Rodgers & Joseph E. Zveglich, 2004. "International Trade and Gender Wage Discrimination: Evidence from East Asia," Review of Development Economics, Wiley Blackwell, vol. 8(2), pages 237-254, 05.
- Marjit, Sugata & Broll, Udo & Mitra, Sandip, 1997. "Targeting Sectors for Foreign Capital Inflow in a Small Developing Economy," Review of International Economics, Wiley Blackwell, vol. 5(1), pages 101-06, February.
- Rizwana Siddiqui, 2007. "Modelling Gender Dimensions of the Impact of Economic Reforms in Pakistan," Working Papers MPIA 2007-13, PEP-MPIA.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:32954. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.