Decomposing the Effect of Trade on the Gender Wage Gap

38 Pages Posted: 28 Jan 2017

See all articles by Felipe Benguria

Felipe Benguria

University of Kentucky - Gatton College of Business and Economics

Josh Ederington

University of Kentucky - Department of Economics

Date Written: January 27, 2017

Abstract

This paper utilizes regional variation in exposure to increased Chinese imports in Brazil to investigate the impact of trade on gender wage inequality. We find that rising imports reduced wages in local Brazilian labor markets, but that this wage reduction was entirely borne by male workers (thus reducing the gender wage gap). Using Oaxaca-Blinder decompositions, we find that this reduction in the wage gap was largely explained by differences in the occupational employment of female and male workers, with trade increasing the female share of workers in higher-paying occupations and increasing the (relative) returns to primarily-female occupations.

Keywords: gender wage gap, international trade

JEL Classification: F16, F66, J23, J31, J71

Suggested Citation

Benguria, Felipe and Ederington, Josh, Decomposing the Effect of Trade on the Gender Wage Gap (January 27, 2017). Available at SSRN: https://ssrn.com/abstract=2907094 or http://dx.doi.org/10.2139/ssrn.2907094

Felipe Benguria (Contact Author)

University of Kentucky - Gatton College of Business and Economics ( email )

550 South Limestone
Lexington, KY 40506
United States

Josh Ederington

University of Kentucky - Department of Economics ( email )

335 Business and Economics Building
Lexington, KY 40506
United States

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