Trade Shocks and Gender Wage Gap
Early Career Research Award
This project analyzes the differential wage effect for US female and male workers of US tariff reductions on Mexican goods as part of the North American Free Trade Agreement (NAFTA), a sequel to my earlier study of the effects of NAFTA on the US wages (Hakobyan and McLaren, 2010). Our earlier study found strong effects of the reductions of US tariffs on Mexican goods, but it did not delve into the potential differential impact on workers of different gender. Preliminary work suggests that US female workers experienced slower wage growth over 1990s as compared to their male counterparts facing similar trade shocks. Moreover, this effect seems to be more pronounced for college-educated than high school dropout female workers which is contrary to the finding for male workers.