Globalization (Trade) and the Wellbeing of (Poor) Women and Children. Maurizio Bussolo Gender Inequality and Globalization: Recent Evidence and Debates November 30, 2011 12:30 - 2:00pm - MC2-800 Sponsored by PREM Gender Anchor (World Bank). Key Question and Controversies.
Gender Inequality and Globalization: Recent Evidence and Debates
November 30, 2011
12:30 - 2:00pm - MC2-800
Sponsored by PREM Gender Anchor (World Bank)
What is the impact of trade shocks on the well-being of (poor) women and children?
R. Kanbur (2001): “Trade, openness and poverty/inequality are the archetypal, emblematic areas around which there are deep divisions, and where certainly the rhetoric is fiercest”
Three broad areas of disagreement:
Level of aggregation
Market structure and power
To answer our key question, one needs to understand how macroeconomic shocks are linked to microeconomic consequences
1st stage: macro shock and its effects on factor markets
2nd stage: poverty depends on how factor incomes are turned into individual consumption by the sharing of factor incomes between members of the household
Feedback loops stage: macro-level changes alter the micro-level intrahousehold allocation processes which, in turn…
What is the impact of trade liberalization on the well-being of women and children?
Some messages from research are very clear:
In policy relevant terms
In the mid 1990s, their respective governments opted for export-led growth strategies
How is this MACRO decision affecting the lives of Consuelo and Aminata?
Differences in Comparative Advantage
Increase in Demand for
Increase in exports of cash crops
Usually controlled by men
Gender income gap ↑
Gender wage gap↓
In Human Kap
Lower supply response
Long term adverse effect
Relationship between Female Labor Force Participation and GDP per capita
Household Size and Age of Household Head by Income Group