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Bargaining for Trade: When Exporting Becomes Detrimental for Female Wages

Author

Listed:
  • Halvarsson, Daniel

    (The Ratio Institute)

  • Lark, Olga

    (Department of Economics, Lund University)

  • Tingvall, Patrik

    (The National Board of Trade Sweden, Södertörn University)

  • Videnord, Josefin

    (Uppsala University)

Abstract
In this paper, we study the link between globalization of firms and gender inequality. Specifically, we examine how the need for interpersonal contacts in trade and gender-specific differences in negotiations are related to the gender wage gap. Our key finding is that export of goods that are intensive in interpersonal contacts widens the gender wage gap. The effect is robust across various specifications and is most pronounced for domestic exporting firms, which do not trade within multinational corporations but with external foreign partners, where the contracting problem is most distinct. We ascribe this result to a male comparative advantage in bargainin

Suggested Citation

  • Halvarsson, Daniel & Lark, Olga & Tingvall, Patrik & Videnord, Josefin, 2022. "Bargaining for Trade: When Exporting Becomes Detrimental for Female Wages," Working Paper Series 1437, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:1437
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    References listed on IDEAS

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    Cited by:

    1. Lark, Olga & Videnord, Josefin, 2023. "Do Exporters Import Gender Inequality?," Working Papers 2023:6, Lund University, Department of Economics.

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    More about this item

    Keywords

    Export; Gender wage gap; Gender inequality; Contract intensity; Interpersonal contacts; International trade;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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