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CGE Analysis of the Impact of Foreign Direct Investment and Tariff Reform on Female and Male Wages

ACCOUNTING ADULT MALE ADULT MALES ADULT WOMEN AGRICULTURE BENCHMARK BENCHMARK DATA CAPACITY BUILDING CHILD LABOR CLERKS COMPETITIVE MODELS CONSTANT RETURNS TO SCALE CONSUMERS DEREGULATION DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DOMESTIC MARKET DOWNWARD PRESSURE ECONOMIC ANALYSIS ECONOMIC INTEGRATION ECONOMIC MODELS ECONOMIC RESEARCH ECONOMIC RESOURCES ECONOMIC STRUCTURE ECONOMICS ELASTICITY ELASTICITY OF SUBSTITUTION EMPLOYEE EMPLOYMENT TRENDS EQUILIBRIUM EXPORTS EXTERNALITY FACTOR MARKETS FEMALE FEMALE LABOR FEMALES GDP GENDER GENDER ASPECTS GENDER DIFFERENCE GENDER DIFFERENCES GENDER EQUALITY GENDER INEQUALITIES GENDERS GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM ANALYSIS GENERAL EQUILIBRIUM MODELS HOTELS HOUSEHOLDS HUMAN CAPITAL HUMAN RESOURCES IMPERFECT COMPETITION IMPORT QUOTAS INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRY WAGE INFORMAL ECONOMY INFORMAL EMPLOYMENT INFORMAL SECTOR INSURANCE JOB SEPARATION JOB TURNOVER JOBS LABOR DEMAND LABOR ECONOMICS LABOR FORCE LABOR INTENSITIES LABOR INTENSITY LABOR MARKET LABOR MARKET DISCRIMINATION LABOR MARKET OUTCOMES LABOR MARKETS LABOR MOBILITY LABOR RELATIONS LABOR SUBSTITUTION EFFECT LABOR SUPPLY LABOR UNIONS LABOR-INTENSIVE TECHNOLOGIES LABORERS LABOUR LABOUR FORCE LABOUR MARKET LABOUR OFFICE LABOUR SHARE MALE WORKERS MARGINAL COSTS MARGINAL PRODUCT MARGINAL PRODUCTIVITY MARGINAL PRODUCTS MARGINAL REVENUE MARKET CLEARING WAGES MARRIED WOMEN MONOPOLISTIC COMPETITION MOTHERHOOD MOTIVATION NATIONAL INCOME OCCUPATION OCCUPATIONAL CLASSIFICATION OCCUPATIONS OPEN ECONOMY POLITICAL ECONOMY PREVIOUS PARAGRAPH PRODUCT DIFFERENTIATION PRODUCT PRICES PRODUCTIVE FIRMS PRODUCTIVITY PRODUCTIVITY EFFECTS PRODUCTIVITY GAINS REAL WAGES RETAIL TRADE RURAL AREAS SERVICE PROVIDERS SERVICE SECTOR SEX SEXES SHELTER SUBSTITUTION EFFECT TOTAL COSTS TRADE LIBERALIZATION TRADE POLICY UNEMPLOYED UNEMPLOYMENT UNSKILLED WORKERS URBAN AREAS VALUE ADDED WAGE DATA WAGE DIFFERENTIAL WAGE DIFFERENTIALS WAGE DISCRIMINATION WAGE GAP WAGE INCREASES WAGE INEQUALITY WAGE POLICIES WAGE RATE WAGE RATES WAGES WOMAN WORKER WORLD TRADE ORGANIZATION WTO YOUNG WORKER YOUNG WORKERS
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World Bank Group, Washington, DC
Africa | Tanzania
2014-10-30T20:59:55Z | 2014-10-30T20:59:55Z | 2014-10

This study analyzes the impact on male and female wages of tariff reform and the reduction of regulatory barriers faced by domestic and foreign firms operating in business services. The study applies the model to Tanzania and develops a data set that distinguishes labor and wages by gender for 52 sectors and four skill categories. The model is the first to incorporate modern trade theory to assess the gender implications of trade reform. Given that the Dixit-Stiglitz framework results in productivity gains from additional varieties of services, the analysis finds that real wages increase across all worker categories. However, the increase in wages is higher for males than for females, because business services use males more intensively than females. The most skilled (female and male) workers, who are also the most intensively used in the business services sectors, benefit more from the real increases in wages. The model illustrates that as the development process continues and developing countries become more business service oriented, these sectors demand more educated workers and their wages will increase relative to those of unskilled workers. The policy conclusion from this model is that it is crucial to invest in the education of females so their human capital increases and their skills are more marketable in business services and other more technologically modern occupations. Otherwise, the wage gap between males and females would likely widen further.

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