International Trade and Gender Wage Discrimination: Evidence from East Asia

18 Pages Posted: 1 Jun 2004

See all articles by Gunseli Berik

Gunseli Berik

University of Utah

Yana Rodgers

Rutgers University - Department of Women's and Gender Studies

Joseph E. Zveglich

Asian Development Bank; Harvard University

Abstract

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.

Suggested Citation

Berik, Gunseli and Rodgers, Yana and Zveglich, Joseph E., International Trade and Gender Wage Discrimination: Evidence from East Asia. Review of Development Economics, Vol. 8, No. 2, pp. 237-254, May 2004. Available at SSRN: https://ssrn.com/abstract=531756

Gunseli Berik (Contact Author)

University of Utah ( email )

260 S. Central Campus Dr.
OSH 243
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801-581-7481 (Phone)

Yana Rodgers

Rutgers University - Department of Women's and Gender Studies ( email )

162 Ryders Lane
New Brunswick, NJ 08901
United States
732-932-9331 (Phone)
732-932-1335 (Fax)

Joseph E. Zveglich

Asian Development Bank ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines
(632) 632-5507 (Phone)

Harvard University ( email )

Littauer Center
Cambridge, MA 02138
United States

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