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The China trade shock and the gender wage gap in India: A District-level analysis

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  • Kajari Saha

    (Indira Gandhi Institute of Development Research)

Abstract

This study provides new evidence on the debate surrounding international trade and the gender wage gap in a developing country context. It asks whether increased competition from trade has any causal effect on the district-level gender wage gap in India. Changes in competition from trade are measured using changes in imports from China, owing to the dramatic rise in Chinese imports into India in recent years. An instrumental variable (IV) based estimation strategy is used following Autor, Dorn, and anson (2016), to delineate causality. Results indicate a positive and statistically significant impact of an increase in Chinese imports on the gender wage gap over time. In addition to the economy-wide ample of workers, this effect holds true for the sub-samples of casual laborers and rural sector workers where the majority of women workers in India are concentrated. Unlike previous studies using industry-level data, the district-level focus of this study allows us to capture micro-level effects, as well as the net effects of trade in the surrounding district.

Suggested Citation

  • Kajari Saha, 2021. "The China trade shock and the gender wage gap in India: A District-level analysis," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2021-012, Indira Gandhi Institute of Development Research, Mumbai, India.
    • Handle: RePEc:ind:igiwpp:2021-012
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    File URL: http://www.igidr.ac.in/pdf/publication/WP-2021-012.pdf
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    References listed on IDEAS

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    Cited by:

    1. Feiyang Shi, 2022. "Import Shock and Local Labour Market Outcomes: A Sino-Indian Case Study," IHEID Working Papers 04-2022, Economics Section, The Graduate Institute of International Studies.

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    More about this item

    Keywords

    International trade; Gender wage gap; Competition; Imports; China; District;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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