This paper documents the changing impact of foreign direct investment (FDI) on gendered wages in urban China. Combining household survey data from 1995 and 2002 with province-level macro-data, the paper finds that FDI as a proportion of investment has a sizable and statistically significant positive effect on both female and male wages in both years. In 1995, women experienced larger gains from FDI than men, but those gender-based advantages had reversed by 2002, with men experiencing larger wage gains from FDI than women. The paper argues that these results reflect the shift of foreign-invested enterprises to higher productivity and more domestically oriented production, a shift that interacts with gender-based employment segregation to more greatly advantage workers in male-dominated than female-dominated industries. These findings indicate that FDI can have considerable structural effects on economies that reach beyond the particular workers and firms linked to foreign investors.China, earnings differentials, foreign direct investment, trade liberalization, JEL Codes: F21, J7, O53,
While women's share of employment has risen in many countries over the last two decades, gender job segregation has worsened, with women increasingly excluded from 'good' jobs in the industrial sector. In this article, the determinants of gender job segregation are assessed using panel data for a broad set of developing countries covering the period 1991-2015. The effect of gender job segregation on all workers, via the labour share of income, is also analysed. The results identify two major contributors to gender job segregation -the rising capital/labour ratio and the ratio of female/male labour force participation rates -indicative of 'crowding' and exclusion as economies move up the industrial ladder. The analysis further indicates that the crowding of women into lower quality jobs has a negative effect on workers as a whole by dampening the labour share of income. Those processes are influenced by global and macroeconomic conditions and policies that have circumscribed the expansion of high-quality jobs relative to labour supply, intensifying competition for 'good' jobs and weakening labour's bargaining power.The authors thank Jayati Ghosh, Alex Izurieta, Richard Kozul-Wright, and participants at the Expert Group Meeting on Macroeconomic Policies and Women's Empowerment for their insightful comments on earlier drafts of this paper. We are also grateful to the editors and three anonymous referees for their helpful feedback.Development and Change 50(4): 976-1008.
In this paper we use the logic of contractual relationships within the family to explore how technological change, distributional struggle, and collective action can help explain the relationship between economic development, fertility decline, and the emergence of more egalitarian marriages. We draw on the historical context of Great Britain and the U.S. between the seventeenth and nineteenth centuries to argue that the property rights afforded male household heads constituted a system of residual claimancy not unlike modern contractual relationships within the capitalist firm. Based upon these patriarchal property rights, we present a simple model of household decisions to allocate women's labor between productive and reproductive activities, comparing the outcomes of egalitarian and patriarchal governance and concluding that patriarchal governance may create incentives for men to force women to "overspecialize" in reproductive labor.Economics Of The Family, Residual Claimancy, Patriarchal Property Rights, Reproductive Labor, Family Law, Patriarchal Production,
Foreign direct investment (FDI) has become a much desired commodity by nations, regions and cities throughout the world. Indeed, governments bid for FDI because it is commonly thought to be an important engine of economic growth, job creation, and technological upgrading. The People's Republic of China (PRC), the developing world's largest recipient of FDI and one of the world's fastest growing economies, is often cited as evidence for the beneficial effects of FDI. Given the PRC's size and the huge allure of its cheap labor force and customer base, one would think that if any country had the bargaining power vis a vis multinational corporations to benefit from FDI, it would be China. But does FDI really deliver these commonly perceived benefits? To answer this question, we study the impact of inward FDI on wages, job creation, investment and tax generation in the PRC from 1986-1999 by running panel regression analysis on provincial level data. An innovation of our analysis is to distinguish the impact of FDI inflows from that of economic liberalization, per se. We find that, contrary to the conventional wisdom, inward FDI has a relatively small positive impact on wages and employment, while having a negative impact on domestic investment and tax revenue. We suggest that the decentralization of the FDI bidding process in China contributes to these negative outcomes, and argue that the limitation on FDI management tools associated with China's WTO entry is likely to further reduce the benefits of FDI for Chinese workers and citizens .
This study embeds paid and unpaid care work in a structuralist macroeconomic model. Care work is formally modeled as a gendered input into the market production process via its impact on the current and future labor force, with altruistic motivations determining both how much support people give one another and the economic effectiveness of that support. This study uses the model to distinguish between two types of economies-a "selfish" versus an "altruistic" economyand seeks to understand how different macroeconomic conditions and events play out in the two cases. Whether and how women and men share the financial and time costs of care condition the results of the comparison, with more equal sharing of care responsibilities making the "altruistic" case more likely.
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