Labor Market and Trade Liberalization and Women's Employment in Chile

Abstract

The paper examines the large increase in female employment in the Chilean economy in the 1980s and 1990s and discusses the extent to which it is explained by trade and labor market liberalization. The changes in women's activity rates and employment for the 1980s and early 1990s are examined with a view in distinguishing these effects. The paper concludes that both trade liberalization and labor market deregulation had effects on the demand for female labor, with the latter being more significant. However, these factors provide only a partial explanation of the growth in female employment. It also suggests that supply factors need to be considered to provide a fuller explanation.

JEL Classification: J16, J23