Globalization and the Gender Earnings Gap : Evidence from Sri Lanka and Cambodia

Disasters in Bangladesh and protests elsewhere have created an intense debate about the value, particularly to women, of apparel employment in developing countries. This paper focuses on how the forces of globalization, specifically the Multi-Fibre...

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Main Authors: Savchenko, Yevgeniya, Lopez Acevedo, Gladys, Robertson, Raymond
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2017
Subjects:
Online Access:http://documents.worldbank.org/curated/en/699061482849262999/Globalization-and-the-gender-earnings-gap-evidence-from-Sri-Lanka-and-Cambodia
http://hdl.handle.net/10986/25833
id okr-10986-25833
recordtype oai_dc
spelling okr-10986-258332021-06-08T14:42:46Z Globalization and the Gender Earnings Gap : Evidence from Sri Lanka and Cambodia Savchenko, Yevgeniya Lopez Acevedo, Gladys Robertson, Raymond globalization gender wage gap gender apparel Multi-Fibre Arrangement textiles wages working condition MFA employment Disasters in Bangladesh and protests elsewhere have created an intense debate about the value, particularly to women, of apparel employment in developing countries. This paper focuses on how the forces of globalization, specifically the Multi-Fibre Arrangement (MFA), have affected women's wages in the apparel sector in developing countries. The paper uses household and labor force surveys from Cambodia and Sri Lanka to estimate both apparel wage premiums relative to other industries and the male-female wage gap before and after the end of the MFA. The approach builds on new models that apply traditional trade theory (e.g., the Heckscher-Ohlin and Stolper-Samuelson theorems) to analyze the effect of globalization on gender-based earnings. The authors find large positive wage premiums and a closing of the male-female wage gap during the MFA period, but smaller premiums and a widening wage gap after the end of the MFA. The results suggest that the benefits of apparel exports for women in developing countries remain significant post-MFA. They also model an approach for studying the effects of globalization that differentiates males and females as separate factors. This may be a fruitful alternative to discrimination models or those that analyze the effects of globalization on women in terms of skill. Further research is necessary to identify the potential development effects of post-MFA apparel employment and to thoroughly compare the benefits documented in this paper with the costs that may come with apparel jobs. 2017-01-10T18:18:07Z 2017-01-10T18:18:07Z 2016-12 Working Paper http://documents.worldbank.org/curated/en/699061482849262999/Globalization-and-the-gender-earnings-gap-evidence-from-Sri-Lanka-and-Cambodia http://hdl.handle.net/10986/25833 English en_US Policy Research Working Paper;No. 7930 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific South Asia Cambodia Sri Lanka
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic globalization
gender wage gap
gender
apparel
Multi-Fibre Arrangement
textiles
wages
working condition
MFA
employment
spellingShingle globalization
gender wage gap
gender
apparel
Multi-Fibre Arrangement
textiles
wages
working condition
MFA
employment
Savchenko, Yevgeniya
Lopez Acevedo, Gladys
Robertson, Raymond
Globalization and the Gender Earnings Gap : Evidence from Sri Lanka and Cambodia
geographic_facet East Asia and Pacific
South Asia
Cambodia
Sri Lanka
relation Policy Research Working Paper;No. 7930
description Disasters in Bangladesh and protests elsewhere have created an intense debate about the value, particularly to women, of apparel employment in developing countries. This paper focuses on how the forces of globalization, specifically the Multi-Fibre Arrangement (MFA), have affected women's wages in the apparel sector in developing countries. The paper uses household and labor force surveys from Cambodia and Sri Lanka to estimate both apparel wage premiums relative to other industries and the male-female wage gap before and after the end of the MFA. The approach builds on new models that apply traditional trade theory (e.g., the Heckscher-Ohlin and Stolper-Samuelson theorems) to analyze the effect of globalization on gender-based earnings. The authors find large positive wage premiums and a closing of the male-female wage gap during the MFA period, but smaller premiums and a widening wage gap after the end of the MFA. The results suggest that the benefits of apparel exports for women in developing countries remain significant post-MFA. They also model an approach for studying the effects of globalization that differentiates males and females as separate factors. This may be a fruitful alternative to discrimination models or those that analyze the effects of globalization on women in terms of skill. Further research is necessary to identify the potential development effects of post-MFA apparel employment and to thoroughly compare the benefits documented in this paper with the costs that may come with apparel jobs.
format Working Paper
author Savchenko, Yevgeniya
Lopez Acevedo, Gladys
Robertson, Raymond
author_facet Savchenko, Yevgeniya
Lopez Acevedo, Gladys
Robertson, Raymond
author_sort Savchenko, Yevgeniya
title Globalization and the Gender Earnings Gap : Evidence from Sri Lanka and Cambodia
title_short Globalization and the Gender Earnings Gap : Evidence from Sri Lanka and Cambodia
title_full Globalization and the Gender Earnings Gap : Evidence from Sri Lanka and Cambodia
title_fullStr Globalization and the Gender Earnings Gap : Evidence from Sri Lanka and Cambodia
title_full_unstemmed Globalization and the Gender Earnings Gap : Evidence from Sri Lanka and Cambodia
title_sort globalization and the gender earnings gap : evidence from sri lanka and cambodia
publisher World Bank, Washington, DC
publishDate 2017
url http://documents.worldbank.org/curated/en/699061482849262999/Globalization-and-the-gender-earnings-gap-evidence-from-Sri-Lanka-and-Cambodia
http://hdl.handle.net/10986/25833
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