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Economic liberalisation, gender wage inequality and welfare

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  • Ujjaini Mukhopadhyay
  • Sarbajit Chaudhuri

Abstract

The article develops a 3-sector general equilibrium model appropriate for economies with female labour oriented export sector to examine the effects of economic liberalisation policies on gender based wage inequality. It is assumed that there exist disparities in efficiencies between male and female labour due to skewed access to education and health, and differences in their spending patterns leading to differential effects of respective wages on their nutrition. The results indicate that tariff cut may reduce gender wage inequality, but may have detrimental effects on welfare; while foreign capital inflow may accentuate the inequality, despite improving the welfare of the economy. However, government policies to increase the provision of education and health have favourable effects on gender wage inequality but may be welfare deteriorating. Thus, the article provides a theoretical explanation to empirical evidences of diverse effects of liberalisation on gender wage inequality and explains the possibility of a trade-off between gender inequality and social welfare.

Suggested Citation

  • Ujjaini Mukhopadhyay & Sarbajit Chaudhuri, 2013. "Economic liberalisation, gender wage inequality and welfare," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 22(8), pages 1214-1239, December.
    • Handle: RePEc:taf:jitecd:v:22:y:2013:i:8:p:1214-1239
    DOI: 10.1080/09638199.2012.654400
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    References listed on IDEAS

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    1. Nira Ramachandran, 2006. "Women and Food Security in South Asia: Current Issues and Emerging Concerns," WIDER Working Paper Series RP2006-131, World Institute for Development Economic Research (UNU-WIDER).
    2. Siddiqui, Rizwana, 2006. "Modelling Gender Dimensions of the Impact Of Economic Reforms in Pakistan," Conference papers 331468, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Chaudhuri, Sarbajit & Mukhopadhyay, Ujjaini, 2009. "Revisiting the Informal Sector: A General Equilibrium Approach," MPRA Paper 52135, University Library of Munich, Germany.
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    Cited by:

    1. Alokesh Baura & Priyanta Ghosh, 2015. "On Wage Inequality, Trade and Technology: Theory and Empirics," Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi Discussion Papers 15-09, Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi, India.

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