{"title":"Quota removal, gender-specific export shock, and female labor force participation in China","authors":"Lixia Wang , Haiyun Liu","doi":"10.1016/j.econmod.2024.106821","DOIUrl":null,"url":null,"abstract":"<div><p>There is a lack of consensus on how trade liberalization affects female labor force participation (FLFP), primarily due to challenges in identifying exports of female labor-intensive products. In this study, we construct a unique gender-specific export shock by examining the removal of the Multi-Fiber Arrangement (MFA) trade quotas in 2005, which targeted the female labor-intensive textiles and clothing (T&C) industry. Using a difference-in-differences (DID) approach, we find that MFA quota removal significantly increases FLFP in China, which is attributed to the heightened demand for female labor in the T&C industry and related services. Increased demand not only boosts women incomes but also significantly reduces fertility rates. Furthermore, it disproportionately benefits four specific female groups: well-educated women, young women, unmarried women, and those without young children.</p></div>","PeriodicalId":48419,"journal":{"name":"Economic Modelling","volume":null,"pages":null},"PeriodicalIF":4.2000,"publicationDate":"2024-07-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Economic Modelling","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0264999324001780","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
There is a lack of consensus on how trade liberalization affects female labor force participation (FLFP), primarily due to challenges in identifying exports of female labor-intensive products. In this study, we construct a unique gender-specific export shock by examining the removal of the Multi-Fiber Arrangement (MFA) trade quotas in 2005, which targeted the female labor-intensive textiles and clothing (T&C) industry. Using a difference-in-differences (DID) approach, we find that MFA quota removal significantly increases FLFP in China, which is attributed to the heightened demand for female labor in the T&C industry and related services. Increased demand not only boosts women incomes but also significantly reduces fertility rates. Furthermore, it disproportionately benefits four specific female groups: well-educated women, young women, unmarried women, and those without young children.
期刊介绍：
Economic Modelling fills a major gap in the economics literature, providing a single source of both theoretical and applied papers on economic modelling. The journal prime objective is to provide an international review of the state-of-the-art in economic modelling. Economic Modelling publishes the complete versions of many large-scale models of industrially advanced economies which have been developed for policy analysis. Examples are the Bank of England Model and the US Federal Reserve Board Model which had hitherto been unpublished. As individual models are revised and updated, the journal publishes subsequent papers dealing with these revisions, so keeping its readers as up to date as possible.
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