The Impact of Trade Liberalization on Gender Wage Inequality in South Korea's Labor Market
This paper examines the impact of trade liberalization on the gender wage gap in South Korea's labor market. Traditional trade theories based on comparative advantage, such as the Heckscher-Ohlin (HO) and the Stolper-Samuelson (SS) model, state that international trade will widen the income gap between skilled-labor and unskilled-labor in developed countries while this wage gap will drop in developing countries. Traditionally, female workers constitute a major portion of the low-skilled labor force in emerging economies. Consequently, trade theory predicts that increasing exposure to trade will reduce the gender wage disparity in developing countries. However, empirical results did not find a significant effect of output growth, caused by export growth, on gender wage inequality. Output growth does not lead to increase relative demand for female workers nor reduce the gender wage gap in South Korea.
Kim, Shinyoung, "The Impact of Trade Liberalization on Gender Wage Inequality in South Korea's Labor Market" (2020). IdeaFest. 87.