International Trade And Gender Wage Inequality

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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 the
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