Download This PaperEffects of Trade on Female Labor Force Participation
51 Pages Posted: 8 Sep 2009
Date Written: September 8, 2009
Abstract
Expansions or contractions of sectors intensively use female labor must affect female labor force participation (FLFP). We suggest that, whenever trade and international specialization expand sectors intensive in female labor, FLFP actually drops. This is because expansions of those sectors come along with contractions of others. These latter contractions, in turn, induce male workers to move to the expanding sectors, driving female workers out of formal employment. Thus, a country that is exporting female labor content is actually substituting male labor for female. Finally, building on U.S.-Mexican trade agreement, we provide empirical evidence that support our argument.
Keywords: Trade, Female Labor Force Participation, Fertility, Technological Change
JEL Classification: F10, F16, J13, J16
Suggested Citation: Suggested Citation
CESifo (Center for Economic Studies and Ifo Institute) ( email )
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Munich, DE-81679
Germany
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