Abstract

This paper provides a brief summary of the literature on foreign direct investment and gender equity as well as an empirical study based on the Moroccan case. The review of empirical literature on the impact of foreign direct investment on gender equity is rather mixed. Foreign direct investment certainly contributes to the feminization of work in developing countries,mainly by expanding labour-intensive, largely export-oriented industries. However, evidence exists that shows women losing their jobs to more qualified men as industries upgrade. While empirical studies indicate a positive impact of foreign direct investment on women’s wages, it seems less likely that this will result in a closing of the gender wage gap. Our case study consists of the analysis of the impact of foreign direct investment on female employment in two important sectors:manufacturing and services (call centers specifically). The following results emerge: – Although Morocco has become more attractive, its capacity to draw more foreign direct investment is still insufficient, due mainly to its small market, the lack of human resources, and persistent governance problems. Foreign direct investment has certainly contributed to the feminization of employment, especially through the expansion of export-oriented industries such as electronics, automotive components and garment. However, female employment is limited to assembly tasks and women are confined to low level positions into industrial hierarchy. Due to their higher productivity and their organizational know-how, multinational subsidiaries tend to distribute high salaries in comparison with their local counterparts. Given the wage gap within foreign firms and the confinement of women in low positions, it is less likely that these better salaries benefit to them. – It is clear that the expansion of call centers in Morocco open up new opportunities and better pay for women.Information technology enabled services seem to have given women confidence and social empowerment. However? Some areas of concern emerge : – the repetitive nature of most of these jobs which may lead to the “burnout syndrome” ; – cases of stress and anxiety that some women face from pressure of having to be constantly controlled by supervisors assisted with information technology and sophisticated management practices ; – reflecting the gendered composition of the industry, women are concentrated in low routinized, clerical related jobs ; – work in call centers reinforces stereotypical perceptions of skill and feminity because of the presumed communication and social abilities of women ; – most call center jobs are “footloose” in nature and there is growing competition from other countries in the Mediterranean and from Africa to attract these jobs.

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