Mending the Gap: Apparel Export Prices and the Gender Wage Gap in Bangladesh

Robertson, Raymond; Kokas, Deeksha; Cardozo, Diego; Lopez-Acevedo, Gladys

doi:10.2139/ssrn.4154054

Cited by 2 publications

(2 citation statements)

References 22 publications

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“…Additionally, since it presents a structural model of trade and gender inequality, it draws parallels to Do, Levchenko, andRaddatz (2016), Juhn, Ujhelyi, andVillegas-Sanchez (2014), Chauvin (2018), andRobertson, Kokas, et al (2022), who present models of trade and gender-segmented labor markets. The focus of each of these papers are, however, different from ours.…”

Section: Introductionmentioning

confidence: 94%

Gender-Segmented Labor Markets and Trade Shocks

Góes¹,

Lopez-Acevedo²,

Robertson³

2023

Preprint

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This paper focuses on how gender segmentation in labor markets shapes the local effects of international trade. We first develop a theoretical framework that embeds trade and gendersegmented labor markets to show that foreign demand shocks may either increase or decrease the female-to-male employment ratio. The key theoretical result shows formally that the effects of trade on gender-segmented labor markets depend crucially on (a) the sectors that face the foreign demand shock; and (b) the domestic relevance of the foreign countries in which the demand shocks originate from. If the foreign demand shock from a relevant market happens in a female-intensive (male-intensive) sector, the model predicts that the female-to-male employment ratio should increase (decrease). We then use plausibly exogenous variation in the exposure of Tunisian local labor markets to foreign demand shocks and show that the empirical results are consistent with the theoretical prediction. In Tunisia, a country with a high degree of gender segmentation in labor markets, foreign-demand shocks have been relatively larger in male-intensive sectors. This induced a decrease in the female-to-male employment ratio, with households likely substituting female for male labor supply.

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Section: Introductionmentioning

confidence: 94%

Gender-Segmented Labor Markets and Trade Shocks

Góes¹,

Lopez-Acevedo²,

Robertson³

2023

Preprint

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“…Apparel draws workers from agriculture and informality in developing countries. Apparel production is (less-skilled) labour-intensive, requires lower start-up costs, pays higher wages than other domestic alternatives, hires more female workers than other sectors and could help mend the gender wage gap (Lopez-Acevedo & Robertson, 2016;Robertson et al, 2020Robertson et al, , 2021Robertson et al, , 2022. As such, expanding apparel exports could also reduce migration flows.…”

Section: Introductionmentioning

confidence: 99%

Heterogeneous trade agreements and adverse implications of restrictive rules of origin: Evidence from apparel trade

Abreha,

Robertson

2023

World Economy

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We revisit the heterogeneous effects of regional trade agreements (RTAs) using a PPML gravity model and comparing apparel and total trade. Apparel, as a politically sensitive sector, has specialised, unusually restrictive rules of origin (RoOs) clauses that vary considerably across RTAs. Our RTA estimates have a significantly higher variance for apparel trade than total trade. We also find that the sizes of the RTA estimates for apparel trade are significantly and negatively correlated with the restrictiveness of RoOs. Additionally, assessing temporary exceptions to the apparel RoOs in US trade agreements, we find that ending the temporary exceptions is associated with less apparel trade. We further illustrate how RTAs can be effective development policy instruments to promote economic development in developing countries. For example, updating the RoOs in the Dominican Republic‐Central America Free Trade Agreement can create jobs and significantly reduce Central American emigration.

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Mending the Gap: Apparel Export Prices and the Gender Wage Gap in Bangladesh

Cited by 2 publications

References 22 publications

Gender-Segmented Labor Markets and Trade Shocks

Gender-Segmented Labor Markets and Trade Shocks

Heterogeneous trade agreements and adverse implications of restrictive rules of origin: Evidence from apparel trade

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