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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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    References listed on IDEAS

    as
    1. Silvia Laens & María Inés Terra, 1999. "Effects of the Completition of MERCOSUR on the Uruguayan Labor Market. A simulation exercies using a CGE model," Documentos de Trabajo (working papers) 2199, Department of Economics - dECON.
    2. Giorgina Piani, 2003. "¿Quién se casa con quién? Homogamia educativa en las parejas de Montevideo y Zona Metropolitana," Documentos de Trabajo (working papers) 1303, Department of Economics - dECON.
    3. Fontana, Marzia & Wood, Adrian, 2000. "Modeling the Effects of Trade on Women, at Work and at Home," World Development, Elsevier, vol. 28(7), pages 1173-1190, July.
    4. Rizwana Siddiqui, 2007. "Modelling Gender Dimensions of the Impact of Economic Reforms in Pakistan," Working Papers MPIA 2007-13, PEP-MPIA.
    5. Marisa Bucheli & Graciela Sanroman, 2004. "Salarios Femeninos en el Uruguay ¿Existe un Techo de Cristal?," Documentos de Trabajo (working papers) 0504, Department of Economics - dECON.
    6. Harris, Richard, 1984. "Applied General Equilibrium Analysis of Small Open Economies with Scale Economies and Imperfect Competition," American Economic Review, American Economic Association, vol. 74(5), pages 1016-1032, December.
    7. Marisa Carla Bucheli Anaya & Cecilia González Rodríguez-Villamil, 2012. "An estimation of the wage curve for Uruguay," Revista Cuadernos de Economía, Universidad Nacional de Colombia -FCE - CID, June.
    8. María Inés Terra & Gustavo Bittencourt & Rosario Domingo & Carmen Estrades & Gabriel Katz & Alvaro Ons & Héctor Pastori, 2004. "Estudios de competitividad sectoriales. Industria manufacturera," Documentos de Trabajo (working papers) 2305, Department of Economics - dECON.
    9. Carlos Casacuberta & Marcel Vaillant, 2002. "Trade and wages in Uruguay in the 1990’s," Documentos de Trabajo (working papers) 0902, Department of Economics - dECON.
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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. 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.
    3. 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.
    4. Gaddis, Isis & Pieters, Janneke, 2012. "Trade Liberalization and Female Labor Force Participation: Evidence from Brazil," IZA Discussion Papers 6809, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    trade openness; gender; general equilibrium model; home production; leisure; wage curve;
    All these keywords.

    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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