Gender-Segmented Labor Markets and Foreign Demand Shocks

Carlos G\'oes, Gladys Lopez-Acevedo and Raymond Robertson
Authors registered in the RePEc Author Service: Gladys Lopez-Acevedo

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Abstract: Gender segmentation in labor markets shapes the local effects of international trade. We develop a theory that combines exports with gender-segmented labor markets and show that, in this framework, foreign demand shocks may either increase or decrease the female-to-male employment ratio. If a foreign demand shock happens in a female-intensive (male-intensive) sector, the model predicts that the female-to-male employment ratio should increase (decrease). We then use plausibly exogenous variation in the exposure of Tunisian local labor markets to foreign demand shocks and show that the empirical results are consistent with the theoretical prediction. In Tunisia, a developing country with a high degree of gender segmentation in 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: 2023-01, Revised 2023-12
New Economics Papers: this item is included in nep-ara, nep-gen and nep-int
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2301.09252

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