Research
Trade-induced Structural Transformation and Household-level Inequality: Lessons from Vietnam
Abstract
There is little consensus on whether access to foreign export markets can promote gender equality in developing countries. This paper leverages the US-Vietnam Bilateral Trade Agreement (BTA) that came into force in 2001 as a natural experiment to explore whether the disproportionate expansion of the female-intensive wearing apparel sector can trigger the structural transformation of the female labour force in a way which promotes gender equality at the household level. By using a difference-in-differences strategy and through relying on panel data, I find that women residing in provinces that were more exposed to the BTA were more likely to work in the wearing apparel sector and increased their income relative to their husbands. I then examine whether the improvement in labour market opportunities and relative income of women led to changes in the allocation of resources that could be indicative of higher female intrahousehold bargaining power. I find that household consumption of `female-preferred' goods did not increase in provinces that experienced more exposure to the BTA.Funded by STEG (CEPR) PhD Grant.
Trade Policy and Jobs in Vietnam: The Unintended Consequences of Trump’s Trade War
with Sanchari Roy, Lorenzo Rotunno, and Pierre-Louis Vezina
Abstract
We use the US-China trade war as an exogenous shock to export opportunities in Vietnam and examine its effect on Vietnam’s exports and labor markets. We find that Vietnamese exports to the US were around 40 percent higher in 2020 relative to 2017 in sectors hit by US tariffs on Chinese products. This increase is driven by both new export product varieties and increased exports in existing categories. This expansion in export opportunities led to job creation and increased working hours in affected sectors relative to non-affected ones. It also led to an increase in wages, even more so for women workers.Funded by BA-Leverhulme SRG.
The Effect of the Vietnam War on Female Labour Market Outcomes
Abstract
War results in demographic shocks and sex imbalance, both of which have been shown to increase female labour force participation (FLFP). Existing evidence on the nexus between conflict and FLFP predominantly stems from developed nations which may not fully capture the dynamics in developing contexts. This paper examines the impact of the Vietnam War on Vietnamese women's labour market outcomes 14 to 44 years after its conclusion. To this end, I match comprehensive historical data on ordnance deployed by the United States in Vietnam to microdata. While socialist ideology may have contributed to high FLFP rates in North Vietnam, I find that war-induced demographic shocks contributed to increasing FLFP rates in South Vietnam. Specifically, a one-standard deviation increase in historical bombing exposure is associated with an increase in the probability of Southern women working by 1.03 to 1.57 percentage points. On the other hand, I find that exposure to the Vietnam War is not associated to the FLFP rates in the North. In terms of mechanism, I find that war widows increased their labour supply to compensate for the negative income shock caused by the loss of their husbands. I also find that daughters of widows are more likely to work than daughters of non-widows. However, I find a lack of support for demand-side mechanisms, namely, substitution towards female labour.Managers’ and Households’ Attitude Toward Women Working in Factories: Role Model Firms and Information Interventions in Pakistan
with Abu Siddique and Waqar Wadho
Funded by PEDL (MRG).