Title

Effects of Trade Liberalization on the Gender Wage Gap: Evidences from Panel Data of the Indian Manufacturing Sector

Abstract

This paper examines the effects of trade liberalization on the gender wage gap in the Indian manufacturing sector during the period 2000 to 2007. We find that trade liberalization has had the effect of widening the gender wage gap in the labour-intensive, but not in the capital-intensive, industries. The explanations offered for the widening gender wage gap are in terms of the Stolper-Samuelson effect and trade-induced skill biased technical change. Policy implications of the findings are noted.

Keywords

Gender wage gap, Trade liberalization, Manufacturing sector, India

JEL Classification

F16, J16, J31

Inquiries

Manabu FURUTA
Research Institute for Economics and Business Administration,
Kobe University
Rokkodai-cho, Nada-ku, Kobe
657-8501 Japan
Phone: +81-78-803-7036
FAX: +81-78-803-7059

Prabir BHATTACHARYA
School of Social Sciences, Heriot-Watt University, Edinburgh, Scotland, UK

Takahiro SATO
Research Institute for Economics and Business Administration,
Kobe University
Rokkodai-cho, Nada-ku, Kobe
657-8501 Japan
Phone: +81-78-803-7036
FAX: +81-78-803-7059