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Gender, informal employment and trade liberalization in Mexico

Sarra Ben Yahmed () and Pamela Bombarda

No 18-028, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: We study how trade liberalization affects formal employment across gender. We propose a theoretical mechanism to explain how male and female formal employment shares can respond differently to trade liberalization through labor reallocation across tradable and non-tradable sectors. Using Mexican data over the period 1993-2001, we find that tariff cuts increase the probability of working formally for both men and women within 4-digit manufacturing industries. The formalization of jobs within tradable sectors is driven by large firms. Constructing a regional tariff measure, we find that regional exposure to trade liberalization increases the probability of working formally in the manufacturing sector for both men and women, and especially for men. However in the service sectors, the probability of working formally decreases for low-skilled women.

Keywords: formal and informal labor; gender; trade liberalization; Mexico (search for similar items in EconPapers)
JEL-codes: F11 F16 F63 O17 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-gen, nep-int, nep-iue and nep-lma
Date: 2018
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https://www.econstor.eu/bitstream/10419/179506/1/1024069990.pdf (application/pdf)

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Working Paper: Gender, Informal Employment and Trade Liberalization in Mexico (2017) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:18028

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