Riding the Trade Waves: Gender-Differentiated Employment Dynamics in Asia

Abstract

International trade plays a critical role in shaping labour market dynamics across economies around the world. However, instability or fluctuations in trade flows, referred as the trade volatility, can influence employment patterns across genders. This study examines how trade fluctuations effect gender-differentiated employment among Asian economies. Using data from the World Bank database for the period from 2011 to 2023, covering 11 Asian countries, this study implies panel-data estimation techniques, including fixed and random effects models to control for unobserved heterogeneity. Two separate models are estimated in the empirical analysis for male and female employment shares. The findings reveal that trade volatility has a statistically significant impact on female employment as compared to male employment across Asian region. The empirical findings show that females are more vulnerable to external trade shocks in Asian labour markets. Overall, the study underscores the importance of implementing gender-targeted policies to mitigate the negative impacts of uncertainty in trade flows and for the promotion of more inclusive employment outcomes.

Keywords: Trade volatility, Asian economies, panel data, gender-disaggregated employment