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The Gender Pay Gap and Trade Liberalisation: Evidence for India

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  • Barry Reilly

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

  • Puja Vasudeva Dutta

    (National Council of Applied Economic Research, New Delhi)

Abstract

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.

Suggested Citation

  • 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.
  • Handle: RePEc:pru:wpaper:32
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    References listed on IDEAS

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    Cited by:

    1. Azam, Mehtabul, 2012. "Changes in Wage Structure in Urban India, 1983–2004: A Quantile Regression Decomposition," World Development, Elsevier, vol. 40(6), pages 1135-1150.
    2. Kajari Saha, 2021. "The China trade shock and the gender wage gap in India: A District-level analysis," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2021-012, Indira Gandhi Institute of Development Research, Mumbai, India.
    3. Kaveri Deb & William R. Hauk, 2020. "The Impact of Chinese Imports on Indian Wage Inequality," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(2), pages 267-290, June.
    4. Mukhopadhyay, Ujjaini & Chaudhuri, Sarbajit, 2011. "Economic liberalization, gender wage inequality and welfare – a theoretical analysis," MPRA Paper 32954, University Library of Munich, Germany.
    5. Maryam Jamielaa, 2018. "Trade openness and female-male earnings differentials: Evidence from Indonesia," Economic Journal of Emerging Markets, Universitas Islam Indonesia, Department of Economics, vol. 10(1), pages 82-92, April.
    6. 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.
    7. Escobal, Javier & Flores, Eva, 2009. "Maternal Migration and Child Well-Being in Peru," MPRA Paper 56463, University Library of Munich, Germany.
    8. Pooja Sengupta & Roma Puri, 2022. "Gender Pay Gap in India: A Reality and the Way Forward—An Empirical Approach Using Quantile Regression Technique," Studies in Microeconomics, , vol. 10(1), pages 50-81, June.
    9. repec:pit:wpaper:341 is not listed on IDEAS
    10. Chamarbagwala, Rubiana, 2006. "Economic Liberalization and Wage Inequality in India," World Development, Elsevier, vol. 34(12), pages 1997-2015, December.
    11. Dsouza, Alwin & Singh, Sudershan & Ranjan, Rahul, 2015. "Existence of Structural Disadvantage among socio-religious groups: Is it a reality? An Analysis of Indian Labour Market," MPRA Paper 63648, University Library of Munich, Germany.
    12. Shireen AlAzzawi, 2013. "Did Trade Liberalization Benefit Female Workers? Evidence on Wage and Employment Effects from Egypt," Working Papers 787, Economic Research Forum, revised Oct 2013.
    13. Akanksha Choudhary & Ashish Singh, 2017. "Are Daughters Like Mothers: Evidence on Intergenerational Educational Mobility Among Young Females in India," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 133(2), pages 601-621, September.
    14. Amirah El-Haddad, 2011. "Female Wages in the Egyptian Textiles and Clothing Industry: Low Pay or Discrimination?," Working Papers 633, Economic Research Forum, revised 09 Jan 2011.
    15. Anna Lovasz, 2008. "Competition and the Gender Wage Gap: New Evidence from Linked Employer-Employee Data in Hungary 1986-2003," Budapest Working Papers on the Labour Market 0804, Institute of Economics, Centre for Economic and Regional Studies.
    16. Javier Escobal & Eva Flores, 2009. "Maternal Migration and Child Well-being in Peru(Migración materna y bienestar infantil en el Perú)," Documentos de Trabajo (Niños del Milenio-GRADE) ninosm56, Niños del Milenio (Young Lives).
    17. Fatma El-Hamidi, 2008. "Trade Liberalization, Gender Segmentation, and Wage Discrimination: Evidence from Egypt," Working Papers 414, Economic Research Forum, revised 06 Jan 2008.

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    More about this item

    Keywords

    gender pay gap; trade liberalisation; India;
    All these keywords.

    JEL classification:

    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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