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Mind the gaps: Gender complementarities in migration and FDI

Author

Listed:
  • Federico Carril-Caccia

    (University of Granada)

  • Ana Cuadros

    (Universitat Jaume I and Institute of International Economics)

  • Jordi Paniagua

    (University of Valencia, Kellogg Institute, University of Notre Dame)

Abstract

This paper analyzes the effect of increasing the share of female migrants on Foreign Direct Investment (FDI). We develop a model that introduces gendered labor and discrimination into a structural model of FDI. Our estimates reveal that the increasing feminization of the immigrant labor force is positively associated with FDI. Furthermore, the model drives the quantification of the elasticity of substitution (EoS) between male and female labor for 27 OECD countries (1.3 on average) and three job types: managers (3.2), professionals (2.1), and non-qualified workers (6.0). The EoS is lower in countries with small gender gaps (e.g., 0.3 in Sweden) than in countries with large gender gaps (e.g., 6.1 in Mexico). Our analysis offers novel perspectives on the impacts of migration and the potential implications of policies targeted at enhancing female workforce participation.

Suggested Citation

  • Federico Carril-Caccia & Ana Cuadros & Jordi Paniagua, 2024. "Mind the gaps: Gender complementarities in migration and FDI," Working Papers 2402, Department of Applied Economics II, Universidad de Valencia.
    • Handle: RePEc:eec:wpaper:2402
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    References listed on IDEAS

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    More about this item

    Keywords

    FDI; migration; elasticity of substitution; gender; discrimination;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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