Service Industry Liberalization and Gender Wage Gap

Abstract

From a gender perspective, this paper uses the 2015 China Household Finance Survey (CHFS) data to examine the impact of service sector liberalization on the gender wage gap. The empirical results show that: first, in terms of the overall gender wage, the opening of the service industry has a certain impact on gender wages. Specifically, the service industry exports widen the gender wage gap, but the effect of service industry imports on its impact is not clear. Foreign direct investment in services not only raises the overall gender wage, but also narrows the gender wage gap; second, for workers with different skills, high-skilled women suffer less from the trade in services than low-skilled women, can benefit more from foreign direct investment, and have a smaller gender wage gap in the high-skilled workforce. Therefore, based on the above, this paper puts forward that China should weigh the advantages and disadvantages according to the actual situation, strengthen the guidance and management of service trade and continue to increase investment, and give full play to the important role of foreign direct investment in the service industry in raising labor income and narrowing the gender wage gap. It also increases women's educational opportunities and reduce the gender wage gap.