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Trade Openness and Gender in Uruguay: a CGE Analysis

Author

Listed:
  • Inés Terra

    (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República)

  • Marisa Bucheli

    (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República)

  • Carmen Estrades

    (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República)

Abstract

In this paper we analyze the gender differentiated impacts of trade openness in Uruguay using a gender aware CGE model with endogenous labor supply and a home production function. We simulate complete trade liberalization and an increase in tariffs to the level of 1994. Trade liberalization increases female employment and wages, reducing the gender wage gap. These findings are consistent with Çagatay (2001) and Fofana et al (2003). The effect of trade openness on time distribution of workers is different by skills. Skilled workers, mainly women, reduce time spent in leisure and domestic work increasing labor supply. In contrast, unskilled workers increase leisure time, especially men. Trade openness leads to a more equitable distribution of time spent in domestic work. When there is a more imperfect substitution among genders in the home production function, women reduce more leisure time. The increase in tariff to the level of 1994 has the opposite results.

Suggested Citation

  • Inés Terra & Marisa Bucheli & Carmen Estrades, 2007. "Trade Openness and Gender in Uruguay: a CGE Analysis," Documentos de Trabajo (working papers) 2407, Department of Economics - dECON.
    • Handle: RePEc:ude:wpaper:2407
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    File URL: https://hdl.handle.net/20.500.12008/2091
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    Cited by:

    1. Filipski, Mateusz & Aboudrare, Abdellah & Lybbert, Travis J. & Taylor, J. Edward, 2015. "Spice Price Spikes: Simulating Gendered Impacts of a Saffron Boom and Bust in Rural Mexico," 2015 Conference, August 9-14, 2015, Milan, Italy 229066, International Association of Agricultural Economists.
    2. Martin SAWADOGO & Gountiéni Damien LANKOANDE & Alain SIRI, 2023. "Effet du commerce intracommunautaire sur l’emploi féminin dans l’espace UEMOA," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 58, pages 5-20.
    3. Filipski, Mateusz & Aboudrare, Abdellah & Lybbert, Travis J. & Taylor, J. Edward, 2017. "Spice Price Spikes: Simulating Impacts of Saffron Price Volatility in a Gendered Local Economy-Wide Model," World Development, Elsevier, vol. 91(C), pages 84-99.
    4. Latorre, Maria C., 2014. "CGE analysis of the impact of foreign direct investment and tariff reform on female and male wages," Policy Research Working Paper Series 7073, The World Bank.
    5. Latorre, María C., 2014. "A CGE analysis of the impact of foreign direct investment and tariff reform on female and male wages," Conference papers 332453, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Isis Gaddis & Janneke Pieters, 2017. "The Gendered Labor Market Impacts of Trade Liberalization: Evidence from Brazil," Journal of Human Resources, University of Wisconsin Press, vol. 52(2), pages 457-490.

    More about this item

    Keywords

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    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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