Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/179506
Authors: 
Ben Yahmed, Sarra
Bombarda, Pamela
Year of Publication: 
2018
Series/Report no.: 
ZEW Discussion Papers No. 18-028
Publisher: 
Zentrum für Europäische Wirtschaftsforschung (ZEW), Mannheim
Abstract: 
We study how trade liberalization affects formal employment across gender. We propose a theoretical mechanism to explain how male and female formal employment shares can respond differently to trade liberalization through labor reallocation across tradable and non-tradable sectors. Using Mexican data over the period 1993-2001, we find that tariff cuts increase the probability of working formally for both men and women within 4-digit manufacturing industries. The formalization of jobs within tradable sectors is driven by large firms. Constructing a regional tariff measure, we find that regional exposure to trade liberalization increases the probability of working formally in the manufacturing sector for both men and women, and especially for men. However in the service sectors, the probability of working formally decreases for low-skilled women.
Subjects: 
formal and informal labor
gender
trade liberalization
Mexico
JEL: 
F11
F16
F63
O17
Document Type: 
Working Paper

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