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GTAP Resources: Resource Display

GTAP Resource #6905

"Global trade policy reform and gender inequality in the labour market"
by Bekkers, Eddy, Kirti Jhunjhunwala, Jeanne Metivier, Victor Stolzenberg and Ayse Nihal Yilmaz


Abstract
On average, wages of female workers are lower than wages of male workers, leading to a gender wage gap at a global level. In this paper, we explore the gender bias in actual trade costs, explore to what extent trade reform could be instrumental in reducing the gender wage gap and analyse the potential for digitalisation-related reductions in trade costs to reduce the gender wage gap. First, we analyse the relation between various types of trade costs and female labour force intensity across sectors. We find that more female labour force intensive sectors face both higher tariffs and non-tariffs barriers when exporting to other regions. Moreover, they have to pay higher trade costs on the intermediate inputs used. Second, we explore different trade policy reforms with regards to goods and services trade, and establish that services trade policy reform has a stronger downward effect on the average global male wage premium than goods trade policy reform. The main reason for this result is that tariffs tend to protect female-intensive sectors from severe import competition, making it difficult to design a reduction in tariffs leading to higher female wages globally. Third, we simulate trade cost reductions driven by the reduced requirement for face-to-face interaction in jobs, a phenomenon driven by digitalisation. This change would generate a much larger reduction of the gender wage gap than the trade policy experiments.


Resource Details (Export Citation) GTAP Keywords
Category: 2023 Conference Paper
Status: Not published
By/In: Presented during the 26th Annual Conference on Global Economic Analysis (Bordeaux, France)
Date: 2023
Version:
Created: Metivier, J. (4/14/2023)
Updated: Metivier, J. (4/14/2023)
Visits: 361
- Model extension/development
- Labor market issues
- Trade and gender


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  File format Impact_of_Trade_Liberalization_on_Gender_wage_gap(4)  (2.6 MB)   Replicated: 0 time(s)


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