The Effect of Government Size and Trade Openness on Gender Wage Gap in Developing Countries during 2001–2013

Abstract

The present article aims to investigate the effect of government size and trade openness on gender wage gap in developing countries during 2001–2013. The economy model analysis was done using country level aggregate data. The government size positively affected gender wage gap, which indicates that any increase in government size leads to an increase in gender wage gap. In addition, the trade openness coefficient decreases the gender wage gap significantly. In fact, increasing the trade openness coefficient and external investment increases women’s wage on the one hand and decreases gender wage gap on the other.