Men, women, and machines: How trade impacts gender inequality

Abstract

PRELIMINARY AbstractRecent trade papers find that exporting firms are more productive, produce higher quality goods, and use more advanced technologies. In this paper we explore the implications of exports and technology upgrading on an under-explored aspect of wage inequality-gender inequality. We build a model with old and new technologies which require different amounts of white and blue-collar tasks. White and blue collar tasks can be performed by male or female workers.Reminiscent of Autor, Levy, and Murnane (2003) in which computers replace the need for routine physical tasks, the new technology in our model replaces the need for physically demanding skills, "brawn," and men are replaced by women in blue-collar tasks but not in white-collar tasks. Using establishment level data from Mexico, we investigate the link between tariff reductions associated with the North American Free Trade Agreement (NAFTA), exports, and demand for female workers. Consistent with the previous literature and the predictions of our model, we find that tariff reductions increased exports through the entry of new firms into the export sector. We find evidence that these newly exporting firms updated their machinery and equipment and replaced male blue-collar workers with female blue-collar workers. JEL: codes.

Trade Liberalization and Gender Inequality in Emerging Economies - from the Perspective of Sustainable Development Goals

“…A number of the studies identified the effect of trade liberalization on changes in female labor force participation rate but they did not focus on gender-based inequality in labor force participation for example (Standing, 1989;Tzannatos, 1999;Łobodzinska, 2000;Ozler, 2000;Maurerfazio et al, 2007;Hyder and Behrman, 2012;Juhn et al, 2012). A vast study has been done to identify the effect of increasing trade on gender-based inequality in wage in the labor market for example but not limited to (Hughes and overlooked gender inequality in the labor market in other aspects.…”

Trade liberalization and gender inequality

“…One recent study analyzes the effect of trade liberalization on gender inequality through technological change, explicitly using the North American Free Trade Agreement (NAFTA) between Canada, Mexico, and the US [8]. Tariffs on trade between the countries were reduced, which improved export opportunities for firms in Mexico.…”

Влияние Внешних Факторов На Развитие Рынка Консалтинговых Услуг

“…See Black and Brainerd, 2004;Juhn et al, 2014;Oostendorp, 2009;Tzannatos, 1999;and Wood, 1991. 22 See Berik et al, 2004;Busse and Spielmann, 2006;Braunstein and Brenner, 2007;DominguezVillalobos and Brown-Grossman, 2010;and Menon and van der Meulen Rodgers, 2009.…”