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Does international trade impact wage discrimination?

Author

Listed:
  • Jongsung Kim

    (Bryant University)

  • Edinaldo Tebaldi

    (Bryant University)

Abstract

This paper uses microdata from the 2006 Current Population Survey (CPS) combined with data from the U.S. International Trade Commission (USITC) and the Bureau of Economic Analysis (BEA) to evaluate the degree to which international trade affects wage discrimination. The paper's findings contribute to the literature in two fronts. First, it shows that empirical analyses that fail to properly account for gender or race differences might produce unreliable results regarding the impact of international trade (and/or competition) on the race/gender wage gap. Second, this paper provides evidence that export intensiveness contributes to reduce the overall gender wage gap, but adversely affects the wages of Hispanic women when compared to white non-Hispanic women. In addition, import penetration is found to increase the wage gap of male Hispanics compared to male white non-Hispanics.

Suggested Citation

  • Jongsung Kim & Edinaldo Tebaldi, 2011. "Does international trade impact wage discrimination?," Economics Bulletin, AccessEcon, vol. 31(3), pages 2709-2724.
    • Handle: RePEc:ebl:ecbull:eb-11-00509
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2011/Volume31/EB-11-V31-I3-P244.pdf
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    References listed on IDEAS

    as
    1. Edinaldo Tebaldi & Jongsung Kim, 2010. "Two Tales on the Returns to Education: The Impact of Trade on Wages," Review of Development Economics, Wiley Blackwell, vol. 14(4), pages 768-782, November.
    2. Thorsten Schank & Claus Schnabel & Joachim Wagner, 2016. "Do Exporters Really Pay Higher Wages? First Evidence from German Linked Employer–Employee Data," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 5, pages 177-213, World Scientific Publishing Co. Pte. Ltd..
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    7. Mariko Sakakibara & Michael E. Porter, 2001. "Competing At Home To Win Abroad: Evidence From Japanese Industry," The Review of Economics and Statistics, MIT Press, vol. 83(2), pages 310-322, May.
    8. Feenstra, Robert C. (ed.), 2000. "The Impact of International Trade on Wages," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226239637.
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    10. Jacqueline Agesa & Darrick Hamilton, 2004. "Competition and Wage Discrimination: The Effects of Interindustry Concentration and Import Penetration," Social Science Quarterly, Southwestern Social Science Association, vol. 85(1), pages 121-135, March.
    11. Sandra E. Black & Philip E. Strahan, 2001. "The Division of Spoils: Rent-Sharing and Discrimination in a Regulated Industry," American Economic Review, American Economic Association, vol. 91(4), pages 814-831, September.
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    More about this item

    Keywords

    International Trade; Gender; Race; Wage Gap; Discrimination;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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