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Does trade liberalization help to reduce gender inequality? A cross-country panel data analysis of wage gap

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  • Nozomi Kimura

    (Osaka School of International Public Policy, Osaka University)

Abstract

This paper examines the relationship between trade openness and the gender wage gap using the wage data divided into six sectors and three different skill levels (high-, medium- and low-skill) in 19 developed countries from 1995 to 2005. We apply static and dynamic panel data models to investigate whether greater trade openness has affected the gender wage gap. The results from the fixed effects model indicate that trade openness decreases the wage gap between men and women in medium- and low-skill jobs, while the relationship between trade openness and the wage gap is insignificant in high-skill jobs. When the two-step difference generalized method of moments (GMM) is employed, trade openness is found to reduce the wage gap in medium-skill jobs, but its effect on the wage gap is insignificant in high- and low-skill jobs.

Suggested Citation

  • Nozomi Kimura, 2016. "Does trade liberalization help to reduce gender inequality? A cross-country panel data analysis of wage gap," OSIPP Discussion Paper 16E002, Osaka School of International Public Policy, Osaka University.
    • Handle: RePEc:osp:wpaper:16e002
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    References listed on IDEAS

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    More about this item

    Keywords

    Trade and gender; wage gap; trade openness;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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