Globalization and Social Change: Gender-Specific Effects of Trade Liberalization in Indonesia
We analyze the gender-specific effects of trade liberalization on participation in market work, domestic duties, and marriage rates in Indonesia. We show that female work participation increased and participation in domestic duties declined in regions that were more exposed to input tariff reductions. The effects of output tariff reductions were much less pronounced, and we find little impacts on men. Among the potential channels, we find that reductions in input tariffs led to a relative expansion of more female-intensive sectors as well as a decrease in sectoral gender segregation, especially among the low skilled. Liberalization also led to delayed marriage among both sexes and reduced fertility among less educated women.
We thank Arjun S. Bedi, Michael Grimm, Stephan Klasen, Günther Schulze, seminar participants at the University of Antwerp, the University of Bielefeld, the University of Freiburg, Erasmus University Rotterdam and conference participants at the Annual International Conference of the Research Group on Development Economics in Heidelberg 2016, the Labor Economy Conference in Budapest 2016, the IMF conference on Gender and Macroeconomics 2017, the Nordic Conference in Development Economics in Gothenburg 2017, and the ETSG conference in Florence 2017 for useful comments. We would also like to thank two anonymous referees and a co-editor for their helpful comments and suggestions. Janneke Pieters gratefully acknowledges financial support for this work under the Growth and Economic Opportunities for Women (GrOW) initiative. GrOW is a multi-funder partnership with the UK Government Department for International Development, The William and Flora Hewlett Foundation, and Canada’s International Development Research Centre (IDRC). The views expressed herein do not necessarily represent those of IDRC or its Board of Governors.
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