Trade liberalization in India: Impact on occupational sex segregation

Type Working Paper - (unpublished draft)
Title Trade liberalization in India: Impact on occupational sex segregation
Author(s)
Publication (Day/Month/Year) 2008
URL http://www.olin.wustl.edu/docs/CRES/Kapur.pdf
Abstract
Segregation of men and women into different occupations is an extensively researched topic in the area of labor market discrimination. Most of these studies simply look at the demand and supply side factors causing the observed occupational sex segregation. This paper examines the impact of trade liberalization on occupational sex segregation in India. To our knowledge, there has been no empirical evidence linking trade reforms to occupational sex segregation which has been identified as one of the major causes of gender wage inequality--the only exception being the study by Meyer L.B (2003). We focus on the possible channels through which trade reforms could affect occupational sex segregation. We examine the sub-state level changes in occupational sex segregation indices over time and also look into the impact on individual level changes in probability of working in a non-traditional occupation. The empirical estimation exploits the detailed repeated cross sectional data of India’s National Sample Survey Organization (NSSO) combined with Census of India data and trade data by UNCTAD. Results indicate that there was relatively more reduction in occupational sex segregation in those areas in urban India which saw greater trade liberalization. However in rural areas, trade liberalization does not seem to affect occupational sex segregation. The results at the individual level show a relative fall in sex differential in a working woman’s probability of being employed in a male occupation relative to a man’s probability in industries witnessing greater tariff falls thereby suggesting falling segregation due to trade liberalization. These results hold even after we control for other factors affecting gender based occupational segregation and account for comprehensive district/region, industry and time fixed effects. The results suggest that the current period of trade liberalization and other forms of economic liberalization directly and indirectly affects cross regional trends in gender segregation.

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