Economic Liberalisation, Gender Wage Inequality and Welfare


Mukhopadhyay, Ujjaini, and Sarbajit Chaudhuri. 2013. “Economic Liberalisation, Gender Wage Inequality and Welfare.” The Journal of International Trade & Economic Development 22 (8): 1214–39.

Authors: Sarbajit Chaudhuri, Ujjaini Mukhopadhyay


The article develops a 3-sector general equilibrium model appropriate for economies with female labour oriented export sector to examine the effects of economic liberalisation policies on gender based wage inequality. It is assumed that there exist disparities in efficiencies between male and female labour due to skewed access to education and health, and differences in their spending patterns leading to differential effects of respective wages on their nutrition. The results indicate that tariff cut may reduce gender wage inequality, but may have detrimental effects on welfare; while foreign capital inflow may accentuate the inequality, despite improving the welfare of the economy. However, government policies to increase the provision of education and health have favourable effects on gender wage inequality but may be welfare deteriorating. Thus, the article provides a theoretical explanation to empirical evidences of diverse effects of liberalisation on gender wage inequality and explains the possibility of a trade-off between gender inequality and social welfare.

Keywords: gender, wage inequality, foreign capital inflow, tariff cut

Topics: Economies, Economic Inequality, Education, Gender, Women, Gendered Power Relations, Gender Equality/Inequality, Governance, Health, Political Economies

Year: 2013

© 2024 CONSORTIUM ON GENDER, SECURITY & HUMAN RIGHTSLEGAL STATEMENT All photographs used on this site, and any materials posted on it, are the property of their respective owners, and are used by permission. Photographs: The images used on the site may not be downloaded, used, or reproduced in any way without the permission of the owner of the image. Materials: Visitors to the site are welcome to peruse the materials posted for their own research or for educational purposes. These materials, whether the property of the Consortium or of another, may only be reproduced with the permission of the owner of the material. This website contains copyrighted materials. The Consortium believes that any use of copyrighted material on this site is both permissive and in accordance with the Fair Use doctrine of 17 U.S.C. § 107. If, however, you believe that your intellectual property rights have been violated, please contact the Consortium at