The paper explores how competition from international trade affects gender wage discrimination in two open economies. According to neoclassical theory, if discrimination is costly, then increased industry competitiveness from international trade lessens the incentive for employers to discriminate against women. This effect should be stronger in concentrated sectors, where employers can use excess profits to cover the costs of discrimination. Alternatively, increased international trade may reduce women's bargaining power to achieve wage gains. Results for Taiwan and Korea indicate that, in contrast to neoclassical theory, competition from foreign trade in concentrated industries is positively associated with wage discrimination against women.
This study examines connections between intergroup inequality and macroeconomic outcomes, considering various channels through which gender, growth, and development interact. It upholds the salience not only of equality in opportunities but also equality in outcomes. The contribution argues that inequalities based on gender, race, ethnicity, and class undermine the ability to provision and expand capabilities, and it examines the macroeconomic policies that are likely to promote broadly shared development. It explores how the macroeconomy acts as a structure of constraint in achieving gender equality and in turn how gender relations in areas like education and wage gaps can have macro-level impacts. Further, it underscores that the interaction of the macroeconomy and gender relations depends on the structure of the economy, the nature of job segregation, the particular measure of gender inequality, and a country's international relations. Finally, it outlines policies for promoting gender equality as both an intrinsic goal and a step toward improving well-being.Development, growth, inequality, gender, macroeconomic policy, feminist economics, JEL CODES: 04, J3, E0, B54, D30,
After 1980, the Taiwanese economy was marked by technological change, growing overseas investment by Taiwanese firms, and continuing success with export-oriented manufacturing. In the manufacturing sector these developments coincided with a decline in women's employment opportunities relative to men's, a shift from wage to salaried employment, and an increase in gender wage inequality. Using industry-level panel data, this study investigates the effects of Taiwan's restructuring during this period on gender wage inequality. The most important findings are: greater export orientation adversely affects both men's and women's wages yet reduces gender wage inequality, because male employees face a greater wage penalty than women; greater capital intensity improves both men's and women's wages; and the shift toward salaried jobs improves men's wages while reducing wages of women. These results hold after controlling for the effects of female industrial crowding, female reserve labor supply, firm size, and overseas foreign direct investment.Gender Wage Inequality, Export-ORIENTED Growth, Taiwan, Gender, Earnings, Manufacturing Industry,
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