Globalisation and the Gender Earnings Gap: Evidence from Sri Lanka and Cambodia 1992-2015

Raymond E Robertson,Yevgeniya Savchenko,Gladys Lopez-Acevedo

doi:10.2139/ssrn.3253480

Raymond E Robertson, Yevgeniya Savchenko + Show 1 more

Open Access

https://doi.org/10.2139/ssrn.3253480

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Journal: SSRN	Publication Date: Jan 1, 2018
Citations: 1	License type: cc-by

Affiliation: Macalester College, Georgetown University

Abstract

This paper focuses on how the forces of globalisation, specifically the Multi-Fibre Arrangement (MFA), have affected women's wages in the apparel sector in developing countries. Using household and labour force surveys from Cambodia and Sri Lanka, we 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. Our results suggest that apparel exports continued to benefit women in developing countries post-MFA.

Highlights

The idea that incorporating women into the formal workforce contributes to economic development is well established in academic literature (Anderson & Eswaran, 2009; Duflo, 2012; Galor & Weil, 1996)
Taking advantage of the comparison between Sri Lanka and Cambodia, we show that the changes in trade flows and the composition of trade move in ways that are consistent with the predictions that trade is driving the changes in returns to different elements of wages in both countries
Our results contribute in several ways to the debate surrounding the value of apparel exports and employment for women in developing countries

Summary

Introduction

The idea that incorporating women into the formal workforce contributes to economic development is well established in academic literature (Anderson & Eswaran, 2009; Duflo, 2012; Galor & Weil, 1996). Over the last 40 years, apparel production has been shifting to developing countries, creating opportunities for women to enter the labour force and increase their earnings over domestic alternatives (Lopez-Acevedo & Robertson, 2012, 2016; Robertson, Brown, Pierre, & Sanchez-Puer, 2009).. The drop in prices was especially stark after the end of the Multi-Fibre Arrangement (MFA) in 2005 as production shifted to low-wage countries (Harrigan & Barrows, 2009). These price changes have been linked to wages and working conditions in Cambodia (ILO, 2016a), as well as the structure of the apparel sector in Sri Lanka (Kelegama, 2005a, 2005b, 2006, 2009)

Results

Discussion

Conclusion