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Economic Reforms and Gender-Based Wage Inequality in the Presence of Factor Market Distortions

Author

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  • Somasree Poddar

    (Lady Brabourne College)

  • Sarbajit Chaudhuri

    (University of Calcutta)

Abstract

A simple three-sector general equilibrium model has been developed with both male and female labour and factor market distortions. The effects of different liberalized economic policies have been examined on the gender-based wage inequality. The analysis finds that credit market reform and tariff reform produce favourable effects on the wage inequality while the liberalized investment policy becomes counterproductive. The basic model has been extended to treat domestic capital differently from foreign capital. In the extended model, all of the above results hold. Additionally, it has been found that domestic capital formation is likely to produce a favourable impact on the gender wage inequality. These results have important policy implications for a small open developing economy.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:jqecon:v:14:y:2016:i:2:d:10.1007_s40953-016-0031-x
    DOI: 10.1007/s40953-016-0031-x
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    Cited by:

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    3. Sarbajit Chaudhuri & Somasree Poddar Roychowdhury & Salonkara Chaudhuri, 2019. "Gender-based wage inequality and economic liberalism in the presence of endogenous supply of female labour," Indian Economic Review, Springer, vol. 54(2), pages 239-260, December.
    4. Dibyendu Banerjee & Purbasha Bhattacharyya & Susmita Chatterjee, 2024. "Market Distortions and Welfare in Developing Countries: A Search for Critical Levels of Reforms," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 67(2), pages 501-522, June.

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    More about this item

    Keywords

    Male labour; Female labour; Gender wage inequality; Labour market distortion; Credit market distortion; Economic reforms; General equilibrium;
    All these keywords.

    JEL classification:

    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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