In a message dated 99-04-28 14:37:14 EDT, you write: << Sandra E. Black and Elizabeth Brainerd
It is now well documented that the gender wage gap declined substantially
in the 1980s, despite rising overall wage inequality. While Blau and Kahn
(JoLE 1997) attribute much of this improvement to gains in women's relative
labor market experience and other observable characteristics, a substantial
part of the decline in the gender wage gap remains unexplained, and may be
due to reduced discrimination against women in the labor market. This
paper tests the hypothesis (based on Becker 1957) that increased
globalization in the 1980s forced employers to reduce costly discrimination
against women and thus accounted for part of the "unexplained" improvement
in the gender pay gap.
To test this hypothesis, we calculate the change in the residual gender
wage gap across industries (as well as cities) over time using CPS data
from 1977 - 1994, and test the correlation between this measure and changes
in import shares. The wage data are further broken down by the type of
market structure in an industry, i.e. whether the industry is concentrated
or competitive. Since concentrated industries face little competitive
pressure to reduce discrimination, an increase in competition from
increased trade should lead to a reduction in the residual gender wage
gap. We use a difference-in-differences approach to compare the change in
the residual gender wage gap in concentrated versus unconcentrated sectors,
using the latter as a control for changes in the gender wage gap that are
unrelated to competitive pressures. The findings indicate that increased
competition through trade did contribute to the narrowing of the gender
wage gap, suggesting that, at least in this sense, trade may benefit women
relative to men.
JEL Classification Codes
J7, J3
View Entire Article in Adobe Acrobat Format
<http://www.ny.frb.org/rmaghome/staff_rp/sr74.pdf>
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Date: Wed, 28 Apr 1999 14:31:45 -0400
To: lbo-talk at lists.panix.com
From: Doug Henwood <dhenwood at panix.com>
Subject: trade good for women, Fed sez
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