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International Trade and Gender Wage Discrimination: Evidence from East Asia
Author(s) -
Berik Günseli,
Rodgers Yana van der Meulen,
Zveglich Joseph E.
Publication year - 2004
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/j.1467-9361.2004.00230.x
Subject(s) - economics , wage , competition (biology) , bargaining power , incentive , low wage , wage inequality , labour economics , gender discrimination , market power , international trade , international economics , demographic economics , market economy , microeconomics , ecology , monopoly , biology
The paper explores how competition from international trade affects gender wage discrimination in two open economies. According to neoclassical theory, if discrimination is costly, then increased industry competitiveness from international trade lessens the incentive for employers to discriminate against women. This effect should be stronger in concentrated sectors, where employers can use excess profits to cover the costs of discrimination. Alternatively, increased international trade may reduce women's bargaining power to achieve wage gains. Results for Taiwan and Korea indicate that, in contrast to neoclassical theory, competition from foreign trade in concentrated industries is positively associated with wage discrimination against women.