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Abstract

This paper uses an economywide computable general equilibrium (CGE) model to study the impact of trade policy reform on male and female labor in Mozambique. It explores links between trade reform, product prices and wages by gender in an empirical trade framework that incorporates Stolper-Samuelson effects and sectorspecific factors. The results indicate that trade reform has little effect on gender differences within skill categories but substantial effects on wage differentials across skills. Since a large share of women work as unskilled agricultural labor in Mozambique, women are strongly affected by any policy change that affects agriculture. Sensitivity analysis with respect to various elasticities indicates that these results are robust. From a policy perspective, the results suggest that it is far more important in Mozambique to be concerned with upgrading the skill endowment of the female labor force, which is well below that of men, than with the differential gender impact within labor categories of trade policy.

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