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 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.Economic Theory&Research,Water and Industry,Environmental Economics&Policies,Public Health Promotion,Health Monitoring&Evaluation,Health Monitoring&Evaluation,Water and Industry,Environmental Economics&Policies,Economic Theory&Research,TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT

Gender Pay Gap: A Macro Perspective

This paper examines the factors influencing the gender wage gap by using an unbalanced cross-country aggregated panel data set for a sample covering 53 economies for the period 1995–2010. Using robust estimators proposed by Lewbel (2012) to correct for heterogeneity and endogeneity, results suggest that a higher female share in the industry sector tends to widen the gender wage gap regardless of a country’s development stage. While having more children widens the gender wage gap, as expected, the effect is only statistically significant for developing countries. In developed countries, more labor force participation by women seems to narrow the gender wage gap, probably due to the number of female labor market entrants taking up higher-paying service sector jobs. For developing countries, closing the gender gaps in labor force participation and education is not sufficient to achieve gender wage parity. Higher-paying jobs should be created by developing the service sector in these economies

The Impact of Protective Measures for Female Workers

Policies designed to protect female workers have controversial effects on labor market outcomes, both in theory and in practice. The analysis uses repeated cross-sections of household survey data for Taiwan to estimate the impact of working-hours restrictions and maternity benefits. Differential coverage across industrial sectors and demographic groups provides a unique opportunity to identify the impact of both policies in a single natural experiment framework. While working-hours restrictions have a negative impact on women's actual hours worked and employment, maternity benefits increase these labor inputs, implying that women value the opportunity to return to jobs they might otherwise have to leave.

Gender Differences in Access to Health Care among the Elderly: Evidence from Southeast Asia

Populations become increasingly feminized with age. Since older women are more vulnerable to poverty, they may find it more difficult than men to access health care. This study examines factors that may constrain older persons in Southeast Asia from meeting their health-care needs when sick. Our analysis of household survey data from Cambodia, the Philippines, and Viet Nam shows that women are more likely to have reported sickness or injury than men, a difference that is meaningful and statistically significant. While women in Cambodia and the Philippines are more likely to seek treatment than men, the gender difference is reversed in Viet Nam where the stigma and discrimination associated with some diseases may more strongly deter women. The probability of seeking treatment rises with age more sharply for women than men in all countries. However, for the subsample of elders, the gender difference is not significant

Gender Pay Gap: A Macro Perspective

This paper examines the factors influencing the gender wage gap by using an unbalanced cross-country aggregated panel data set for a sample covering 53 economies for the period 1995–2010. Using robust estimators proposed by Lewbel (2012) to correct for heterogeneity and endogeneity, results suggest that a higher female share in the industry sector tends to widen the gender wage gap regardless of a country’s development stage. While having more children widens the gender wage gap, as expected, the effect is only statistically significant for developing countries. In developed countries, more labor force participation by women seems to narrow the gender wage gap, probably due to the number of female labor market entrants taking up higher-paying service sector jobs. For developing countries, closing the gender gaps in labor force participation and education is not sufficient to achieve gender wage parity. Higher-paying jobs should be created by developing the service sector in these economies.ADB_Gender_pay_gap.pdf: 145 downloads, before Oct. 1, 2020

Occupational segregation and the gender earnings gap/ Zveglich

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Does Trade Promote Gender Wage Equity? Evidence from East Asia

This study explores the impact of competition from international trade on the gender wage gap in Taiwan and South Korea between 1980 and 1999. The dynamic implications of Becker’s (1959) theory of discrimination lead one to expect that increased competition from international trade reduces the incentive for employers to discriminate against women. This effect should be more pronounced in concentrated sectors of the economy, where employers can use excess profits to cover the costs of discrimination. Alternatively, wage discrimination may increase with growing trade in a context of employment segregation that limits women’s ability to achieve wage gains. The empirical strategy controls for differences in market structure across industries in order to isolate the effect of competition from international trade. Estimation results are not consistent with Becker’s theory, as greater international competition in concentrated sectors is associated with larger wage gaps between men and women.