The Inter-American Development Bank (IDB) published a study on gender and trade.
The research entitled "Gender and trade: a relationship at different speeds”, published in September 2020, is written by Magdalena Barafani and Ángeles Barral Verna. It exposes the current discussions on the relationship and the gap between gender and trade. In addition, it explores the possible impacts of the increase in the latter on the situation of women from their role as workers, entrepreneurs and consumers.
The publication finds that “The situation of women in Latin America and the Caribbean is influenced by patterns of gender inequality present at a global level".
She also highlights that female labour participation, although it has increased in recent years, remains a pending challenge in the labour market. There are social stereotypes that relegate women to do most of the unpaid work in the home and displace them towards low-quality jobs, meaning they are often overrepresented in informal jobs. In addition, they face cultural regulatory biases and limited access to capital and information that impede their development as entrepreneurs.
Impacts of increased trade
The authors evaluate possible impacts of increased trade on the situation of the women from their role as workers.
First, they claim that “trade openness brings improvements in the female labour market in terms of participation and wages”. This leads countries to strengthen production and exports in those sectors where they have comparative advantages. With trade openness, the demand for female employment increases, as does their relative wage.
Secondly, it is indicated that this trade opening reduces gender discrimination in the labour market. The authors report that due to the increase in external competition, companies must increase their competitiveness by adjusting costs by reducing the higher wage differential paid to men, generating, at the same time, a reduction in the gender wage gap.
Additionally, the researchers point out a third channel related to the technological contribution: Improvements in production technology complement women's lower physical skills for employment. In short, increased trade benefits women in obtaining employment.
The study also presents the women in their role consumers and how women can benefit from trade through cheaper goods. “In some countries, women’s products have been found to be subject to higher tariffs than men’s products, so trade liberalisation could contribute to greater well-being for women as consumers by eliminating these tariffs and reducing the prices paid by them.”
The text mentions that the Women as entrepreneurs They also face greater challenges than men in taking advantage of the benefits of trade. In Latin America and the Caribbean, only one in five exporting companies is managed by a woman. This is because women face more regulatory obstacles and less access to capital and international markets.
It is also highlighted that the New technologies, the boom in e-commerce and the incorporation of gender clauses in trade agreements provide women with more tools to benefit from international trade, but they are not enough to address the underlying issues. Inequality in access to opportunities remains a fundamental problem for the female population.
The report recommends generating more knowledge on trade and gender in order to reduce the respective gap and help governments establish better policies for a more inclusive and sustainable development..
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