Decomposing the effect of trade on the gender wage gap

Felipe Benguria, Josh Ederington

Research output: Contribution to journalArticlepeer-review

3 Scopus citations

Abstract

This paper uses variation in exposure to increased Chinese imports in Brazil to investigate the impact of trade on gender wage inequality. First, using Brazilian census data, we find that rising imports reduced the gender wage gap in Brazilian local labour markets. Next, using Oaxaca–Blinder decompositions, we show that this reduction in the wage gap was largely explained by trade increasing the share of female workers in higher-paying occupations. Finally, we use a matched employer–employee data set to investigate how individual workers adjust to the trade shock. Similar to the local labour market analysis, we find that male workers exposed to increased import competition saw a larger decline in both wages and cumulative earnings relative to female workers. In addition, we uncover an interesting asymmetry in that, while male workers exhibited much higher degrees of industry mobility in response to the trade shock, female workers exhibited an equal if not higher degree of occupational mobility.

Original languageEnglish
Pages (from-to)1082-1120
Number of pages39
JournalCanadian Journal of Economics
Volume56
Issue number3
DOIs
StatePublished - Aug 1 2023

Bibliographical note

Publisher Copyright:
© 2023 Canadian Economics Association.

ASJC Scopus subject areas

  • Economics and Econometrics

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