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Title: Did Trade Liberalization Help Women? The Case of Mexico in the 1990s
Citation Type: Working Paper
Publication Year: 2010
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Abstract: Using household and establishment level data which span the 1990s, we examine the impact of trade liberalization policies on womens labor market outcomes in Mexico. We find that that womens relative wage remained stable while employment increased, leading to an increase in womens wage bill share. Between-industry shifts, consistent with trade-based explanations, account for up to 40 percent of the growth in womens wage bill share between 1990 and 2000. Comparing across industries, we find tariff cuts and exports are positively related to industry growth and women benefited since some of the fastest growing industries were female-intensive industries. We use establishment level data for the manufacturing sector to examine within-industry shifts in womens wage bill share. Even controlling for detailed industry and maquiladora status, womens wage bill share is positively related to exports by foreign firms, suggesting that trade liberalization further encouraged outsourcing and assembly-type activity. Finally, we find suggestive evidence that household bargaining power shifted in favor of women. Expenditures shifted from goods associated with male preference, such as mens clothing and tobacco and alcohol, to those associated with female preference such as womens clothing and education.
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Authors: Aguayo-Tellez, Ernesto; Airola, Jim; Juhn, Chinhui
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Publication Number: w16195
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Data Collections: IPUMS International
Topics: Gender, Labor Force and Occupational Structure
Countries: Mexico