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Importing Inequality: Trade Liberalisation, Technology and Women’s Employment

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  • Yoko Oishi
  • Dainn Wie

Abstract

We investigate the impact of trade liberalisation on female workers in manufacturing using arguably exogenous variation in Indonesia’s tariff reductions in the 1990s and 2000s. This study utilises output and input tariff changes to examine two different channels through which trade liberalisation affects women’s employment: import competition and imported goods. Our results confirm the findings of previous literature that showed that increased competition driven by a reduction in output tariffs encourages women’s employment; however, we also provide new evidence that shows that a reduction in input tariffs may hurt women’s employment. We surmise that the latter is driven by importing firms’ shifting demands for skilled workers.

Suggested Citation

  • Yoko Oishi & Dainn Wie, 2023. "Importing Inequality: Trade Liberalisation, Technology and Women’s Employment," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 59(3), pages 391-419, September.
    • Handle: RePEc:taf:bindes:v:59:y:2023:i:3:p:391-419
    DOI: 10.1080/00074918.2022.2136622
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    1. Hadi Soesastro & M. Chatib Basri, 1998. "Survey of Recent Developments," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 34(1), pages 3-54.
    2. Tubagus Feridhanusetyawan & Mari Pangestu, 2003. "Indonesian Trade Liberalisation: Estimating The Gains," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 39(1), pages 51-74.
    3. Lee, Jong-Wha & Wie, Dainn, 2015. "Technological Change, Skill Demand, and Wage Inequality: Evidence from Indonesia," World Development, Elsevier, vol. 67(C), pages 238-250.
    4. M. Chatib Basri & Arianto Patunru, 2006. "Survey Of Recent Developments," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 42(3), pages 295-319.
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