Gender wage discrimination with employer prejudice and trade openness

Bibliographic Data

ID11918933
AuthorsSarra Ben Yahmed (0000-0002-3949-0997, Centre for European Economic Research, corresponding author)
Year2023
Volume170
Pages106319-106319
Publication date2023-07-05
Open AccessYes
TypeARTICLE
VenueWorld Development (JOURNAL)
Journal identifiersISSN: 0305-750X • E-ISSN: 1873-5991
PublisherElsevier BV (PUBLISHER)
DOI10.1016/j.worlddev.2023.106319
OpenAlexW4383213706
LanguageEN
Citations received3
References cited40

This paper studies the effect of trade liberalisation on gender wage inequality. A simple trade model with employer taste-based discrimination and imperfect competition provides an explanation for the heterogeneous effects of international trade on the gender wage gap within sectors. While import competition reduces rents and with them the gender wage gap, the effect of exports depends on the level of concentration of a sector. On the one hand, easier access to foreign markets has a competition effect through the selection of the low-cost firms in non-concentrated sectors. On the other hand, better export opportunities with easier access to foreign markets can increase profits of domestic firms’ in concentrated sectors and thus enable discriminatory firms to maintain wage gaps. Evidence from Uruguay supports the empirical relevance of the taste-based discrimination mechanism at the sector level

Competition (biology · Economic rent · Economics · Free trade · International economics · Labour economics · Liberalization · Market economy · Openness to experience · Selection bias · Wage · Wage Inequality · Firm Innovation and Growth · Global trade and economics · Labor market dynamics and wage inequality

Tools

Open DOIOpen Access