Scandinavian Working Papers in Economics

Ratio Working Papers,
The Ratio Institute

No 361: Bargaining for Trade: When Exporting Becomes Detrimental for Female Wages

Daniel Halvarsson (), Olga Lark (), Patrik Tingvall () and Josefin Videnord ()
Additional contact information
Daniel Halvarsson: The Ratio Institute, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden
Olga Lark: Lund University, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden
Patrik Tingvall: Stockholm School of Economics, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden
Josefin Videnord: Uppsala University, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden

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 bargaining.

Keywords: Export; Gender wage gap; Gender inequality; Contract intensity; Interpersonal contacts; International trade

JEL-codes: F16; F66; J16; J31

Language: English

40 pages, August 31, 2022

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