6533b7d3fe1ef96bd125ff4e

RESEARCH PRODUCT

When Stolper-Samuelson Does Not Apply: International Trade and Female Labor

Hosny ZoabiPhilip SauréPhilip Sauré

subject

Labour economicsCapital accumulationmedia_common.quotation_subjectFactor priceWageEconomicsFactors of productionIntuitionmedia_common

description

Whenever a country specializes on industries that use female labor intensively, its female labor force participation should increase. This intuition, which bases on the Stolper-Samuleson Theorem, may fail in a three-factor, two-good model. We develop a model where capital, male and female work are distinct factors of production. We follow an established assumption and postulate that capital accumulation closes the gender wage gap. In this setup, the Stolper-Samuleson based intuition fails necessarily: the gender wage gap widens in countries that specialize on sectors intensive in female labor, and vice versa.

https://doi.org/10.2139/ssrn.1939962