When Stolper-Samuelson Does Not Apply: International Trade and Female Labor

Philip Sauré and Hosny Zoabi

No 275774, Foerder Institute for Economic Research Working Papers from Tel-Aviv University > Foerder Institute for Economic Research

Abstract: Whenever a country specializes on industries that use female labor intensively, its female labor force participation should increase. This intuition, which bases on the Stolper-Samuleson Theorem, may fail in a three-factor, two-good model. We develop a model where capital, male and female work are distinct factors of production. We follow an established assumption and postulate that capital accumulation closes the gender wage gap. In this setup, the Stolper-Samuleson based intuition fails necessarily: the gender wage gap widens in countries that specialize on sectors intensive in female labor, and vice versa.

Keywords: Financial Economics; International Relations/Trade (search for similar items in EconPapers)
Pages: 18
Date: 2011-09
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:isfiwp:275774

DOI: 10.22004/ag.econ.275774

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