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The Gender Pay Gap and Trade Liberalisation: Evidence for India

  • Barry Reilly

    ()

    (Poverty Research Unit at Sussex, Department of Economics, University of Sussex)

  • Puja Vasudeva Dutta

    ()

    (National Council of Applied Economic Research, New Delhi)

This paper uses nationally representative employment surveys to examine the magnitude of the gender pay gap in India and its relationship to a set of trade liberalisation measures. Separate wage equations, corrected for selection bias, are estimated for men and women in wage employment. Conventional index number procedures are used to decompose the gender pay gap into ‘endowment’ and ‘treatment’ components. The ‘treatment’ components comprise about one-third of the overall wage gap – a result in comport with the existing evidence for India. There is some evidence that the ‘treatment’ or residual components are declining over time but the point estimates for the differentials in these components between the initial and terminal years of our analysis are found to be imprecisely determined. A methodology suggested by Horrace and Oaxaca (2001) is used to compute industry specific gender pay gaps and their relationship with selected trade-related measures (e.g., tariff rates and trade ratios) is then examined econometrically within a GLS framework. We find little evidence that the trade-related measures are important determinants of the industry-level gender pay gap and appear to have exerted a relatively benign influence on the evolution of the industry gender pay gap in India over the last two decades.

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Paper provided by Poverty Research Unit at Sussex, University of Sussex in its series PRUS Working Papers with number 32.

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Length: 33 pages
Date of creation: Jul 2005
Date of revision:
Handle: RePEc:pru:wpaper:32
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  2. Black, Sandra & Brainerd, Elizabeth, 2002. "Importing Equality? The Impact of Globalization on Gender Discrimination," CEPR Discussion Papers 3532, C.E.P.R. Discussion Papers.
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  4. Andrew Newell & Barry Reilly, 2000. "The Gender Pay Gap in the Transition from Communism: Some Empirical Evidence," William Davidson Institute Working Papers Series 305, William Davidson Institute at the University of Michigan.
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  20. T.N. Srinivasan, 2001. "India's Reform of External Sector Policies and Future Multilateral Trade Negotiations," Working Papers 830, Economic Growth Center, Yale University.
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