Technical Report Export Exposure and Gender Specific Work Participation in Indonesia

Chesnokova, Tatyana  ,  Rupa, Jesmin  ,  Sim, Nicholas

2015-07 , Institute of Economic Research, Hitotsubashi University
The paper examines if exports have unequal influence on the work decisions of men and women using household panel data from the Indonesian Family Life Survey. We construct a novel measure – the export exposure index – which allows us to estimate the relationship between exports and the work decisions of individuals even after controlling for household and province-year fixed effects. Our regression analysis shows that an increase in exports does not have a statistically significant effect on men, but encourages women to allocate time away from paid employment towards unpaid house or family work. These results are consistent with our simple theoretical model which predicts that the relative increase in spousal income (following an increase in export exposure) strengthens females' comparative advantage in unpaid housework and allows them to devote more time to home production.

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