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NAFTA and the Gender Wage Gap

Author

Listed:
  • Shushanik Hakobyan

    (Fordham University)

  • John McLaren

    (University of Virginia)

Abstract

Using U.S. Census data for 1990–2000, we estimate effects of NAFTA on U.S. wages, focusing on differences by gender. We find that NAFTA tariff reductions are associated with substantially reduced wage growth for married blue-collar women, much larger than the effect for other demographic groups. We investigate several possible explanations for this finding. It is not explained by differential sensitivity of female-dominated occupations to trade shocks, or by household bargaining that makes married female workers less able to change their industry of employment than other workers. We find some support for an explanation based on an equilibrium theory of selective non-participation in the labor market, whereby some of the higher-wage married female workers in their industry drop out of the labor market in response to their industry’s loss of tariff. However, this does not fully explain the findings, so we are left with a puzzle.

Suggested Citation

  • Shushanik Hakobyan & John McLaren, 2017. "NAFTA and the Gender Wage Gap," Upjohn Working Papers 17-270, W.E. Upjohn Institute for Employment Research.
    • Handle: RePEc:upj:weupjo:17-270
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    References listed on IDEAS

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    Cited by:

    1. Besedeš, Tibor & Lee, Seung Hoon & Yang, Tongyang, 2021. "Trade liberalization and gender gaps in local labor market outcomes: Dimensions of adjustment in the United States," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 574-588.
    2. Felipe Benguria & Josh Ederington, 2023. "Decomposing the effect of trade on the gender wage gap," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 56(3), pages 1082-1120, August.
    3. Brussevich, Masha, 2018. "Does trade liberalization narrow the gender wage gap? The role of sectoral mobility," European Economic Review, Elsevier, vol. 109(C), pages 305-333.

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    More about this item

    Keywords

    NAFTA; gender wage gap; local labor markets;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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