International Trade And Gender Wage Inequality - 1426 Words

International Trade and Gender Wage Inequality Motivation for the Research: In recent years, globalization and international trade has become a significant issue for countries. Consumers tend to use more goods and services and due to the lack of resources, the need to trade with other countries seems to be inevitable. Assuming that globalization would occur, labor factors become noteworthy. Although growth in international trade provide more job opportunities for people, there are still inequality in wage between male and female labors. According to Heckscher-Olin model, trade liberalization in developing countries, would lead to decrease in wage inequalities among low-skilled labors. The intuition behind this theory is that, when trade liberalization occurs in developing countries, production will relocate to those factors that intensively use the relatively abundant of that factor. Since in developing countries low-skilled labor are abundant than skilled factors, opening up trade would increase the demand of that factor, so based on Stolper-Samuelson theory, relative prices of that factor will increase. This may result in a decrease in the gender wage gap since women are likely to have fewer observable job skills than men in general (Artecona and Cunningham, 2002). However, some researchers have other ideas. This made the topic as a controversial problem between economists. There are some case study and surveys about this contradiction that will be presented in theShow MoreRelatedFdi Essay1662 Words   |  7 Pagestraining, direct technological diffusion, innovation and imitation. Indian economy has featured rising wage inequality and demographic dividend simultaneously since the last decade. This study empirically assesses this effect in Indian manufacturing firms using unbalanced panel data for the period 2001-2015. 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A 2013, study by Sarra Ben Yahmed, who did an article on ‘’Gender Wage Discrimination and Trade Open ness. Prejudiced employers in an open industry’’ which goes to explain The International tradeRead MoreWhy Are women Paid Less than Men? The Gender Gap1371 Words   |  6 PagesPaid Less Than Men? The Gender Gap Introduction The equality between men and women is an integral part of human rights, it is also a prerequisite for democracy and social justice. Any democratic state seeks to promote gender equality in all spheres of life. Despite the creation of a strong legal framework to ensure the principle of equality of both sexes, the gap between men and women about their capabilities remains significant (Pomeroy, 72). One of the criteria of gender equality is equal pay forRead MoreEffects Of Income Inequality1038 Words   |  5 Pagesof the biggest concerns in most societies. Independent of philosophy, culture, or religion, the society always care about this growing issue. 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