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Gender-based wage inequality and economic liberalism in the presence of endogenous supply of female labour

Sarbajit Chaudhuri (), Somasree Poddar Roychowdhury () and Salonkara Chaudhuri ()
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Somasree Poddar Roychowdhury: Lady Brabourne College
Salonkara Chaudhuri: University of Queensland

Indian Economic Review, 2019, vol. 54, issue 2, 239-260

Abstract: Abstract This paper develops a three-sector general equilibrium model for a small open developing economy with a non-traded sector that uses only unskilled female labour to provide final services to the skilled families. For measuring the gender-based inequality, we concentrate solely on the unskilled labour market knowing fully well that there exists gender wage discrimination in the market for skilled labour as well. The unskilled female labour supply is endogenously determined from the optimizing behavior of a representative unskilled working family. The consequences of FDI flows and credit market reform have been analyzed on the gender-based wage inequality. Besides, we have gone in for examining the policy impacts on skill-based wage inequality assuming away discrimination against female labour in the high-skilled labour market. Finally, the consequences of FDI flows and credit market reform on the welfare of a poor unskilled working family have also been studied.

Keywords: Male labour; Female labour; Gender-based wage inequality; Skilled-unskilled wage inequality; Endogenous female labour supply; Economic reform; General equilibrium (search for similar items in EconPapers)
JEL-codes: D50 J16 J20 F21 (search for similar items in EconPapers)
Date: 2019
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Handle: RePEc:spr:inecre:v:54:y:2019:i:2:d:10.1007_s41775-019-00050-9