Trade Openness and Gender in Uruguay: a CGE Analysis

María Inés Terra, Marisa Bucheli () and Carmen Estrades ()
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Marisa Bucheli: Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República

No 2407, Documentos de Trabajo (working papers) from Department of Economics - dECON

Abstract: In this paper we analyze the gender differentiated impacts of trade openness in Uruguay using a gender aware CGE model with endogenous labor supply and a home production function. We simulate complete trade liberalization and an increase in tariffs to the level of 1994. Trade liberalization increases female employment and wages, reducing the gender wage gap. These findings are consistent with Çagatay (2001) and Fofana et al (2003). The effect of trade openness on time distribution of workers is different by skills. Skilled workers, mainly women, reduce time spent in leisure and domestic work increasing labor supply. In contrast, unskilled workers increase leisure time, especially men. Trade openness leads to a more equitable distribution of time spent in domestic work. When there is a more imperfect substitution among genders in the home production function, women reduce more leisure time. The increase in tariff to the level of 1994 has the opposite results.

Keywords: trade openness; gender; general equilibrium model; home production; leisure; wage curve (search for similar items in EconPapers)
JEL-codes: D58 D13 J16 J22 F16 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cmp, nep-int, nep-lab and nep-opm
Date: 2007-10

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Related works:
Working Paper: Trade Openness and Gender in Uruguay: a CGE Analysis (2008)
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Persistent link: http://EconPapers.repec.org/RePEc:ude:wpaper:2407

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