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Trade Liberalization and Gender Wage Inequality in Mexico

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  • Lilia Dominguez-Villalobos
  • Flor Brown-Grossman

Abstract

After twenty years of trade liberalization in Mexico, the relationship between gender wage inequality and trade remains insufficiently studied, in spite of evidence of increasing numbers of women in industrial employment. This study aims to analyze the effects of export orientation and other characteristics that represent the industrial underpinnings of restructuring on gender wage inequality for 2001-5. There is consistent evidence of the negative impact of export orientation on men's and women's wages and the gender wage ratio, signifying that women lose in both absolute and relative terms. This result holds after controlling for women's share of employment and the skills of both genders, contrary to the expected effect from trade on equality. There is also a negative relation between a rise in the proportion of unskilled workers and the gender wage ratio, which suggests that the trade-induced skill hypothesis cannot be considered an adequate explanation for gender inequality.

Suggested Citation

  • Lilia Dominguez-Villalobos & Flor Brown-Grossman, 2010. "Trade Liberalization and Gender Wage Inequality in Mexico," Feminist Economics, Taylor & Francis Journals, vol. 16(4), pages 53-79.
    • Handle: RePEc:taf:femeco:v:16:y:2010:i:4:p:53-79
    DOI: 10.1080/13545701.2010.530582
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    References listed on IDEAS

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    1. Gordon H. Hanson, 2003. "What Has Happened to Wages in Mexico since NAFTA?," NBER Working Papers 9563, National Bureau of Economic Research, Inc.
    2. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162, December.
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    Cited by:

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    2. Joanna Wolszczak-Derlacz, 2013. "The Impact Of Gender Wage Gap On Sectoral Economic Growth – Cross-Country Approach," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 8(3), pages 103-122, September.
    3. Rafael Garduño-Rivera, 2013. "Factors that Influence Women’s Economic Participation in Mexico," Economía Mexicana NUEVA ÉPOCA, CIDE, División de Economía, vol. 0(4, Cierre), pages 541-564.
    4. Shahbaz, Muhammad & Ahmed, Khalid & Nawaz, Kishwar & Ali, Amjad, 2019. "Modelling the gender inequality in Pakistan: A macroeconomic perspective," MPRA Paper 97502, University Library of Munich, Germany, revised 10 Dec 2019.
    5. Jiang, Xuemei & Zhao, Changjin & Ouyang, Jin & Shen, Meng, 2023. "Integration in the global value chain, structural change, and the widening gender employment gap in China," China Economic Review, Elsevier, vol. 81(C).
    6. Bataka, Hodabalo, 2024. "Global value chains participation and gender inequalities in Sub-Saharan Africa: Importance of women education," International Economics, Elsevier, vol. 178(C).
    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.

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