Gender wage discrimination with employer prejudice and trade openness

Ben Yahmed, Sarra (2023) Gender wage discrimination with employer prejudice and trade openness. World Development, 170. ISSN 0305-750X

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Abstract

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.

Item Type:	Article
Additional Information:	Funding Information: I thank Carlos Casacuberta for precious help with the data. I am grateful to Pierre-Philippe Combes, Matthieu Crozet, Lionel Fontagné, Cecilia Garcia-Peñalosa, Peter Neary, Marcelo Olarreaga and Alain Trannoy for helpful comments and suggestions. This paper also benefited from comments received in seminars at the Aix-Marseille School of Economics and the University of Oxford, the EDGE PhD workshop, the Arnoldshain Seminar, the EUDN PhD meeting, the RIEF workshop, and the EALE, LAGV and RES annual conferences. Publisher Copyright: © 2023
Uncontrolled Keywords:	employer taste-based discrimination,gender wage gap,imperfect competition,international trade,oligopoly,uruguay,geography, planning and development,development,sociology and political science,economics and econometrics,sdg 5 - gender equality ,/dk/atira/pure/subjectarea/asjc/3300/3305
Faculty \ School:	Faculty of Social Sciences > School of Economics
UEA Research Groups:	Faculty of Social Sciences > Research Groups > Applied Econometrics And Finance
Related URLs:	http://www.scopus.com/inward/record.url?...
Depositing User:	LivePure Connector
Date Deposited:	16 Aug 2024 11:30
Last Modified:	12 Oct 2024 23:59
URI:	https://ueaeprints.uea.ac.uk/id/eprint/96265
DOI:	10.1016/j.worlddev.2023.106319

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