Gender-Segmented Labor Markets and Trade Shocks

Carlos Andre Bezerra De Goes, Gladys C. Lopez-Acevedo and Raymond Robertson
Authors registered in the RePEc Author Service: Gladys Lopez-Acevedo

No 10518, Policy Research Working Paper Series from The World Bank

Abstract: Gender segmentation in labor markets shapes the local effects of international trade. This paper develops a theory that embeds trade in gender-segmented labor markets and shows that in this framework, foreign demand shocks may increase or decrease the female-to-male employment ratio. If a 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). The paper then uses plausibly exogenous variation in the exposure of Tunisian local labor markets to foreign demand shocks and shows that the empirical results are consistent with the theoretical prediction. In Tunisia, a country with a high degree of gender segmentation in the 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.

Date: 2023-07-06
New Economics Papers: this item is included in nep-ara and nep-int
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Working Paper: Gender-Segmented Labor Markets and Trade Shocks (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:10518

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