Does Foreign Investment Liberalisation Enhance Women's Economic Status? Micro‐Evidence from Urban China

26 Pages Posted: 7 Jun 2020

See all articles by Linhui Yu

Linhui Yu

Zhejiang University - College of Economics

Junsen Zhang

The Chinese University of Hong Kong (CUHK) - Department of Economics

Yanbing Wen

affiliation not provided to SSRN

Date Written: December 2019

Abstract

This paper analyses the effects of inward foreign direct investment (FDI) on female earnings and women's economic status in households using Chinese Urban Household Survey data from 1997 to 2008. The identification exploits the substantial relaxation of foreign investment regulations immediately after China's accession to the WTO in 2002. The difference‐in‐differences estimation results show that FDI liberalisation has improved women's economic status significantly by increasing female earnings in sectors more exposed to FDI. Further analyses indicate that foreign investment liberalisation facilitates the promotion of female employees in their career ladders and increases their skill premium, which are two important channels through which women enhance their economic independence.

Keywords: FDI liberalisation, gender earnings, women's economic status

Suggested Citation

Yu, Linhui and Zhang, Junsen and Wen, Yanbing, Does Foreign Investment Liberalisation Enhance Women's Economic Status? Micro‐Evidence from Urban China (December 2019). The World Economy, Vol. 42, Issue 12, pp. 3404-3429, 2019, Available at SSRN: https://ssrn.com/abstract=3621015 or http://dx.doi.org/10.1111/twec.12873

Linhui Yu (Contact Author)

Zhejiang University - College of Economics

Yuquan Campus 38 Zheda Road
Hangzhou, Zhejiang 310027
China

Junsen Zhang

The Chinese University of Hong Kong (CUHK) - Department of Economics ( email )

Shatin, N.T.
Hong Kong

Yanbing Wen

affiliation not provided to SSRN

No Address Available

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
0
Abstract Views
52
PlumX Metrics