Globalization and Social Change: Gender-Specific Effects of Trade Liberalization in Indonesia

36 Pages Posted: 27 Feb 2017

See all articles by Krisztina Kis-Katos

Krisztina Kis-Katos

University of Freiburg - College of Economics and Behavioral Sciences

Janneke Pieters

IZA; Wageningen UR

Robert A. Sparrow

Wageningen UR - Development Economics Group; Erasmus University Rotterdam (EUR) - Institute of Social Studies (ISS); IZA Institute of Labor Economics

Abstract

We analyse the gender-specific effects of trade liberalization on work participation and hours of work and primary participation in domestic duties in Indonesia. We show that female work participation increased in relative terms in regions that were more exposed to input tariff reductions, whereas the effects of output tariff changes were much less pronounced. When looking at the potential channels for these effects, we find that in Indonesia the structure of initial protection was considerably more female-biased than skill-biased and hence reductions in input tariffs have especially benefited sectors with a larger initial concentration of female workers. This has led to a relative expansion of more female intensive sectors as well as to a decrease in gender segregation of occupation, especially among the low skilled. We also find that labour markets are a key channel through which trade liberalization affects marriage decisions. Delayed marriage among both sexes is related to input tariff liberalization, especially in the younger cohorts, as the improved labour opportunities for women reduce the returns to marriage.

Keywords: labour force participation, gender inequality, marriage, trade liberalization, Indonesia

JEL Classification: F13, F16, J12, J16, J21

Suggested Citation

Kis-Katos, Krisztina and Pieters, Janneke and Sparrow, Robert A., Globalization and Social Change: Gender-Specific Effects of Trade Liberalization in Indonesia. IZA Discussion Paper No. 10552. Available at SSRN: https://ssrn.com/abstract=2923635

Krisztina Kis-Katos (Contact Author)

University of Freiburg - College of Economics and Behavioral Sciences ( email )

Freiburg, D-79085
Germany
+44 - (0)761 203 2344 (Phone)
+44 - (0)761 203 2414 (Fax)

HOME PAGE: http://www.vwl.uni-freiburg.de/fakultaet/sopo/team/kis-katos.htm

Wageningen UR ( email )

Hollandseweg 1
Wageningen, 6706KN
Netherlands

Robert A. Sparrow

Wageningen UR - Development Economics Group ( email )

Hollandseweg 1
WAGENINGEN, 6706 KN
Netherlands

Erasmus University Rotterdam (EUR) - Institute of Social Studies (ISS) ( email )

PO Box 29776
Den Haag, 2518 AX
Netherlands

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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