Gender, Informal Employment and Trade Liberalization in Mexico

68 Pages Posted: 5 Jun 2018

See all articles by Ben Yahmed Sarra

Ben Yahmed Sarra

ZEW – Leibniz Centre for European Economic Research

Pamela Bombarda

University of Cergy-Pontoise

Date Written: 2018

Abstract

We study how trade liberalization affects formal employment across gender. We propose a theoretical mechanism to explain how male and female formal employment shares can respond differently to trade liberalization through labor reallocation across tradable and non-tradable sectors. Using Mexican data over the period 1993-2001, we find that tariff cuts increase the probability of working formally for both men and women within 4-digit manufacturing industries. The formalization of jobs within tradable sectors is driven by large firms. Constructing a regional tariff measure, we find that regional exposure to trade liberalization increases the probability of working formally in the manufacturing sector for both men and women, and especially for men. However in the service sectors, the probability of working formally decreases for low-skilled women.

Keywords: Formal and informal labor, gender, trade liberalization, Mexico

JEL Classification: F11, F16, F63, O17

Suggested Citation

Sarra, Ben Yahmed and Bombarda, Pamela, Gender, Informal Employment and Trade Liberalization in Mexico (2018). ZEW - Centre for European Economic Research Discussion Paper No. 18-028, Available at SSRN: https://ssrn.com/abstract=3190988 or http://dx.doi.org/10.2139/ssrn.3190988

Ben Yahmed Sarra (Contact Author)

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Pamela Bombarda

University of Cergy-Pontoise ( email )

33 Boulevard du Port
Cergy-Pontoise Cedex, Cedex 95011
France

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