Foreign Trade and the Gender Earnings Differential in Urban Mexico

Gautam Hazarika () and Rafael Otero

No DP2002-125, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper examines the effect of foreign trade induced product market competition, upon workplace gender discrimination in urban Mexico as measured by the gender earnings differential. More than four decades ago, Becker argued that labour market discrimination was economically inefficient in that discriminating firms must forego a quantity of profit. Thus, firms with more market power, i.e., firms facing less competition, may be more likely to discriminate. It therefore follows that competition in product markets may reduce discrimination in labour markets.

Keywords: Discrimination in employment; Free trade; International trade; Labour demand; Women (search for similar items in EconPapers)
Date: 2002
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Journal Article: Foreign Trade and the Gender Earnings Differential in Urban Mexico (2004)
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