Gender and trade aspects of labour markets

We provide a comprehensive up-to-date review of the large body of theory and evidence on the linkages between trade liberalisation and gender inequality in income, as well as two of the latter's key underlying determinants: wages and employment. On balance, the evidence for developing countries points to an overall beneficial impact of trade expansion on female employment, both relative to male employment and in absolute terms, although largely concentrated in unskilled manufacturing. By contrast, the bulk of the evidence suggests a widening gender wage gap as a result of freer trade.