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Foreign Trade and the Gender Earnings Differential in Urban Mexico

Author

Listed:
  • Hazarika, Gautam

    (University of Texas at Brownsville)

  • Otero, Rafael

    (University of Texas at Brownsville)

Abstract

This paper examines the effect of foreign trade induced product market competition, upon workplace gender discrimination in urban Mexico as measured by the gender earnings differential. More than 3 decades ago, Becker (1957) argued that labor market discrimination was economically inefficient in that discriminating firms must forego a quantity of profit. Thus, firms with more market power, i.e., firms facing less competition, may be likelier to discriminate. It therefore follows that competition in product markets may reduce discrimination in labor markets. The spread of foreign trade has traditionally been a major factor in increased product market competition. Hence, Becker’s thesis suggests foreign trade will reduce employment discrimination. This paper finds evidence of a negative relation between foreign trade linked competition in product markets and workplace gender discrimination in data from the Mexican National Urban Employment Survey (Encuesta National de Empleo Urbano).

Suggested Citation

  • Hazarika, Gautam & Otero, Rafael, 2004. "Foreign Trade and the Gender Earnings Differential in Urban Mexico," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 19, pages 353-373.
    • Handle: RePEc:ris:integr:0279
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    Citations

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    Cited by:

    1. Jongsung Kim & Edinaldo Tebaldi, 2011. "Does international trade impact wage discrimination?," Economics Bulletin, AccessEcon, vol. 31(3), pages 2709-2724.
    2. Mukhopadhyay, Ujjaini & Chaudhuri, Sarbajit, 2011. "Economic liberalization, gender wage inequality and welfare – a theoretical analysis," MPRA Paper 32954, University Library of Munich, Germany.
    3. Philip U. Sauré & Hosny Zoabi, 2009. "Effects of Trade on Female Labor Force Participation," Working Papers 2009-12, Swiss National Bank.
    4. Menon, Nidhiya & Rodgers, Yana van der Meulen, 2009. "International Trade and the Gender Wage Gap: New Evidence from India's Manufacturing Sector," World Development, Elsevier, vol. 37(5), pages 965-981, May.
    5. Somasree Poddar & Sarbajit Chaudhuri, 2016. "Economic Reforms and Gender-Based Wage Inequality in the Presence of Factor Market Distortions," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 14(2), pages 301-321, December.
    6. Dalgıç, Başak & Fazlıoğlu, Burcu & Varol İyidoğan, Pelin, 2016. "Doğrudan Yabancı Yatırımlar Kadın İstihdamını Artırır mı? Türkiye’de Hizmetler Sektörüne Yakından Bakış [Does Foreign Direct Investment Bring Jobs to Women? A Closer Look to Turkish Services Indust," MPRA Paper 70790, University Library of Munich, Germany.
    7. Nikulin, Dagmara & Wolszczak-Derlacz, Joanna, 2022. "GVC involvement and the gender wage gap: Micro-evidence on European countries," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 268-282.
    8. Maryam Jamielaa, 2018. "Trade openness and female-male earnings differentials: Evidence from Indonesia," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 10(1), pages 82-92, April.

    More about this item

    Keywords

    Gender discrimination; Trade liberalization; Mexico;
    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
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General

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