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Economic Reforms and Gender-Based Wage Inequality in the Presence of Factor Market Distortions

Somasree Poddar () and Sarbajit Chaudhuri ()
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Somasree Poddar: Lady Brabourne College

Journal of Quantitative Economics, 2016, vol. 14, issue 2, 301-321

Abstract: Abstract A simple three-sector general equilibrium model has been developed with both male and female labour and factor market distortions. The effects of different liberalized economic policies have been examined on the gender-based wage inequality. The analysis finds that credit market reform and tariff reform produce favourable effects on the wage inequality while the liberalized investment policy becomes counterproductive. The basic model has been extended to treat domestic capital differently from foreign capital. In the extended model, all of the above results hold. Additionally, it has been found that domestic capital formation is likely to produce a favourable impact on the gender wage inequality. These results have important policy implications for a small open developing economy.

Keywords: Male labour; Female labour; Gender wage inequality; Labour market distortion; Credit market distortion; Economic reforms; General equilibrium (search for similar items in EconPapers)
JEL-codes: D50 J16 F21 (search for similar items in EconPapers)
Date: 2016
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Working Paper: Economic Reforms and Gender-based Wage Inequality in the Presence of Factor Market Distortions (2014) Downloads
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