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Gender-Segmented Labor Markets and Trade Shocks

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  • Bezerra De Goes,Carlos Andre
  • Lopez-Acevedo,Gladys C.
  • Robertson,Raymond

Abstract

Gender segmentation in labor markets shapes the local effects of international trade. This paperdevelops a theory that embeds trade in gender-segmented labor markets and shows that in this framework, foreigndemand shocks may increase or decrease the female-to-male employment ratio. If a foreign demand shock from a relevantmarket happens in a female-intensive (male-intensive) sector, the model predicts that the female-to-maleemployment ratio should increase (decrease). The paper then uses plausibly exogenous variation in the exposure ofTunisian local labor markets to foreign demand shocks and shows that the empirical results are consistent with thetheoretical prediction. In Tunisia, a country with a high degree of gender segmentation in the labor markets, foreigndemand shocks have been relatively larger in male-intensive sectors. This induced a decrease in the female-to-maleemployment ratio, with households likely substituting female for male labor supply.

Suggested Citation

  • Bezerra De Goes,Carlos Andre & Lopez-Acevedo,Gladys C. & Robertson,Raymond, 2023. "Gender-Segmented Labor Markets and Trade Shocks," Policy Research Working Paper Series 10518, The World Bank.
    • Handle: RePEc:wbk:wbrwps:10518
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    References listed on IDEAS

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    Cited by:

    1. Kokas, Deeksha & Lopez-Acevedo, Gladys & Vu, Ha, 2023. "Export and Labor Market Outcomes: A Supply Chain Perspective - Evidence from Vietnam," IZA Discussion Papers 16566, Institute of Labor Economics (IZA).
    2. Góes, Carlos & Segnana, Juan & Robertson, Raymond & Lopez-Acevedo, Gladys, 2023. "Local Labor Markets Dynamics and Export Shocks: Theory and Evidence from Indonesia," IZA Discussion Papers 16473, Institute of Labor Economics (IZA).

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    More about this item

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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