International Trade and Wage Discrimination : Evidence from East Asia
This study explores the impact of competition from international trade on wage discrimination by sex in two highly open economies. If discrimination is costly, as posited in neoclassical theory based on Becker (1959), then increased industry compet...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2003/08/2487582/international-trade-wage-discrimination-evidence-east-asia http://hdl.handle.net/10986/18124 |
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okr-10986-181242021-04-23T14:03:41Z International Trade and Wage Discrimination : Evidence from East Asia Berik, Gunseli Van der Meulen Rodgers, Yana Zveglich, Joseph E., Jr. INTERNATIONAL TRADE WOMEN WORKERS EQUAL PAY EQUAL PAY FOR EQUAL WORK COMPETITIVENESS FOREIGN TRADE EQUAL OPPORTUNITY ALTERNATIVE APPROACH APPAREL ASSETS BASE YEAR BASIC METALS BENEFICIAL EFFECTS CAPACITY BUILDING CENTRAL BANK CLOSED ECONOMY COAL COMPETITIVENESS CONSUMER PRICE INDEX DEREGULATION DISCRIMINATION DOMESTIC COMPETITION DOMESTIC INDUSTRY DOMESTIC MARKET DOMESTIC PRODUCTION ECONOMIC POLICY ELASTICITIES ELECTRONICS INDUSTRY EMPIRICAL RESEARCH EMPIRICAL STUDIES EMPLOYMENT EQUILIBRIUM EXCESS PROFITS EXCHANGE RATE EXCHANGE RATES EXPORT ORIENTATION EXPORT RATIO EXPORT RATIOS EXPORTS FINANCIAL CRISIS FOREIGN DIRECT INVESTMENT FOREIGN TRADE GROSS OUTPUT GROSS VALUE IMPACT OF TRADE IMPORT COMPETITION IMPORT PENETRATION IMPORTS INDUSTRIAL PRODUCTS INTERNATIONAL COMPETITIVENESS INTERNATIONAL MARKETS INTERNATIONAL TRADE IRON LABOR FORCE LABOR MARKETS LEGISLATION MANUFACTURING INDUSTRY MARKET POWER MARKET SHARE MARKET SHARES MARKET STRUCTURE METAL PRODUCTS METALS NATIONAL INCOME OPEN ECONOMIES OPENNESS TO IMPORTS PRODUCTIVITY PROFIT RATE PROTECTION RATES PROTECTIONISM REAL WAGES STRUCTURAL CHANGE TRADE DATA TRADE EXPANSION TRADE OPENNESS TRADE PARTNERS TRADE POLICIES TRADE REFORM VALUE OF EXPORTS WAGE DIFFERENTIALS WAGE DISCRIMINATION WAGE GAP WAGE INEQUALITY WAGES WORKERS EQUAL OPPORTUNITY ALTERNATIVE APPROACH This study explores the impact of competition from international trade on wage discrimination by sex in two highly open economies. If discrimination is costly, as posited in neoclassical theory based on Becker (1959), then increased industry competitiveness from international trade reduces the incentive for employers to discriminate against women. Alternatively, increased international trade may contribute to employment segregation and reduced bargaining power for women to achieve wage gains. The approach centers on comparing the impact of international trade on wage discrimination in concentrated and nonconcentrated sectors. The effect of international trade competition is expected to be more pronounced in concentrated sectors, where employers can use excess profits in the absence of trade to cover the costs of discrimination. Wage discrimination is proxied by the portion of the wage gap that cannot be explained by observable skill differences between men and women. The empirical model is estimated using a rich panel data set of residual wage gaps, trade ratios, and alternative measures of domestic concentration for Taiwan (China) and the Republic of Korea during the 1980s and 1990s. Results indicate that in contrast to the implications of neoclassical theory, competition from foreign trade in concentrated industries is positively associated with wage discrimination. These results imply that concerted efforts to enforce equal pay legislation and apply effective equal opportunity legislation are crucial for ensuring that women's pay gains will match those of men in a competitive environment. 2014-04-30T20:16:23Z 2014-04-30T20:16:23Z 2003-08 http://documents.worldbank.org/curated/en/2003/08/2487582/international-trade-wage-discrimination-evidence-east-asia http://hdl.handle.net/10986/18124 English en_US Policy Research Working Paper;No. 3111 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific East Asia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
INTERNATIONAL TRADE WOMEN WORKERS EQUAL PAY EQUAL PAY FOR EQUAL WORK COMPETITIVENESS FOREIGN TRADE EQUAL OPPORTUNITY ALTERNATIVE APPROACH APPAREL ASSETS BASE YEAR BASIC METALS BENEFICIAL EFFECTS CAPACITY BUILDING CENTRAL BANK CLOSED ECONOMY COAL COMPETITIVENESS CONSUMER PRICE INDEX DEREGULATION DISCRIMINATION DOMESTIC COMPETITION DOMESTIC INDUSTRY DOMESTIC MARKET DOMESTIC PRODUCTION ECONOMIC POLICY ELASTICITIES ELECTRONICS INDUSTRY EMPIRICAL RESEARCH EMPIRICAL STUDIES EMPLOYMENT EQUILIBRIUM EXCESS PROFITS EXCHANGE RATE EXCHANGE RATES EXPORT ORIENTATION EXPORT RATIO EXPORT RATIOS EXPORTS FINANCIAL CRISIS FOREIGN DIRECT INVESTMENT FOREIGN TRADE GROSS OUTPUT GROSS VALUE IMPACT OF TRADE IMPORT COMPETITION IMPORT PENETRATION IMPORTS INDUSTRIAL PRODUCTS INTERNATIONAL COMPETITIVENESS INTERNATIONAL MARKETS INTERNATIONAL TRADE IRON LABOR FORCE LABOR MARKETS LEGISLATION MANUFACTURING INDUSTRY MARKET POWER MARKET SHARE MARKET SHARES MARKET STRUCTURE METAL PRODUCTS METALS NATIONAL INCOME OPEN ECONOMIES OPENNESS TO IMPORTS PRODUCTIVITY PROFIT RATE PROTECTION RATES PROTECTIONISM REAL WAGES STRUCTURAL CHANGE TRADE DATA TRADE EXPANSION TRADE OPENNESS TRADE PARTNERS TRADE POLICIES TRADE REFORM VALUE OF EXPORTS WAGE DIFFERENTIALS WAGE DISCRIMINATION WAGE GAP WAGE INEQUALITY WAGES WORKERS EQUAL OPPORTUNITY ALTERNATIVE APPROACH |
| spellingShingle |
INTERNATIONAL TRADE WOMEN WORKERS EQUAL PAY EQUAL PAY FOR EQUAL WORK COMPETITIVENESS FOREIGN TRADE EQUAL OPPORTUNITY ALTERNATIVE APPROACH APPAREL ASSETS BASE YEAR BASIC METALS BENEFICIAL EFFECTS CAPACITY BUILDING CENTRAL BANK CLOSED ECONOMY COAL COMPETITIVENESS CONSUMER PRICE INDEX DEREGULATION DISCRIMINATION DOMESTIC COMPETITION DOMESTIC INDUSTRY DOMESTIC MARKET DOMESTIC PRODUCTION ECONOMIC POLICY ELASTICITIES ELECTRONICS INDUSTRY EMPIRICAL RESEARCH EMPIRICAL STUDIES EMPLOYMENT EQUILIBRIUM EXCESS PROFITS EXCHANGE RATE EXCHANGE RATES EXPORT ORIENTATION EXPORT RATIO EXPORT RATIOS EXPORTS FINANCIAL CRISIS FOREIGN DIRECT INVESTMENT FOREIGN TRADE GROSS OUTPUT GROSS VALUE IMPACT OF TRADE IMPORT COMPETITION IMPORT PENETRATION IMPORTS INDUSTRIAL PRODUCTS INTERNATIONAL COMPETITIVENESS INTERNATIONAL MARKETS INTERNATIONAL TRADE IRON LABOR FORCE LABOR MARKETS LEGISLATION MANUFACTURING INDUSTRY MARKET POWER MARKET SHARE MARKET SHARES MARKET STRUCTURE METAL PRODUCTS METALS NATIONAL INCOME OPEN ECONOMIES OPENNESS TO IMPORTS PRODUCTIVITY PROFIT RATE PROTECTION RATES PROTECTIONISM REAL WAGES STRUCTURAL CHANGE TRADE DATA TRADE EXPANSION TRADE OPENNESS TRADE PARTNERS TRADE POLICIES TRADE REFORM VALUE OF EXPORTS WAGE DIFFERENTIALS WAGE DISCRIMINATION WAGE GAP WAGE INEQUALITY WAGES WORKERS EQUAL OPPORTUNITY ALTERNATIVE APPROACH Berik, Gunseli Van der Meulen Rodgers, Yana Zveglich, Joseph E., Jr. International Trade and Wage Discrimination : Evidence from East Asia |
| geographic_facet |
East Asia and Pacific East Asia |
| relation |
Policy Research Working Paper;No. 3111 |
| description |
This study explores the impact of
competition from international trade on wage discrimination
by sex in two highly open economies. If discrimination is
costly, as posited in neoclassical theory based on Becker
(1959), then increased industry competitiveness from
international trade reduces the incentive for employers to
discriminate against women. Alternatively, increased
international trade may contribute to employment segregation
and reduced bargaining power for women to achieve wage
gains. The approach centers on comparing the impact of
international trade on wage discrimination in concentrated
and nonconcentrated sectors. The effect of international
trade competition is expected to be more pronounced in
concentrated sectors, where employers can use excess profits
in the absence of trade to cover the costs of
discrimination. Wage discrimination is proxied by the
portion of the wage gap that cannot be explained by
observable skill differences between men and women. The
empirical model is estimated using a rich panel data set of
residual wage gaps, trade ratios, and alternative measures
of domestic concentration for Taiwan (China) and the
Republic of Korea during the 1980s and 1990s. Results
indicate that in contrast to the implications of
neoclassical theory, competition from foreign trade in
concentrated industries is positively associated with wage
discrimination. These results imply that concerted efforts
to enforce equal pay legislation and apply effective equal
opportunity legislation are crucial for ensuring that
women's pay gains will match those of men in a
competitive environment. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Berik, Gunseli Van der Meulen Rodgers, Yana Zveglich, Joseph E., Jr. |
| author_facet |
Berik, Gunseli Van der Meulen Rodgers, Yana Zveglich, Joseph E., Jr. |
| author_sort |
Berik, Gunseli |
| title |
International Trade and Wage Discrimination : Evidence from East Asia |
| title_short |
International Trade and Wage Discrimination : Evidence from East Asia |
| title_full |
International Trade and Wage Discrimination : Evidence from East Asia |
| title_fullStr |
International Trade and Wage Discrimination : Evidence from East Asia |
| title_full_unstemmed |
International Trade and Wage Discrimination : Evidence from East Asia |
| title_sort |
international trade and wage discrimination : evidence from east asia |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2003/08/2487582/international-trade-wage-discrimination-evidence-east-asia http://hdl.handle.net/10986/18124 |
| _version_ |
1764438916186767360 |