Globalization and the Gender Wage Gap
50 Pages Posted: 20 Apr 2016
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Globalization and the Gender Wage Gap
Globalization and the Gender Wage Gap
Date Written: March 24, 2004
Abstract
There are several theoretical reasons why globalization will have a narrowing as well as widening effect on the gender wage gap, but little is known about the actual impact, except for a number of country studies. Oostendorp provides a cross-country study of the impact of globalization on the occupational gender wage gap, based on the rarely used but most far-ranging survey of wages around the world, the International Labour Organization's October Inquiry. This annual survey was started in 1924 and contains a wealth of information on wages and the gender wage gap. For the period 1983-99, there is information on the gender wage gap in 161 narrowly defined occupations in more than 80 countries around the world. The author finds the following: The occupational gender wage gap appears to be narrowing with increases in GDP per capita; there is a significantly narrowing impact of trade and foreign direct investment (FDI) net inflows on the occupational gender wage gap for low-skill occupations, both in poorer and richer countries, and for high-skill occupations in richer countries; there is no evidence of a narrowing impact of trade, but there is evidence of a widening impact of FDI net inflows on the high-skill occupational gender wage gap in poorer countries; wage-setting institutions have a strong impact on the occupational gender wage gap in richer countries.
This paper is a product of the Gender Division, Poverty Reduction and Economic Management Network.
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