Why globalisation benefits some women more than others in the workplace

Firms that export or are owned by parent companies overseas have a higher proportion of full-time women workers than businesses that operate only in national markets, finds Maya Oppenheim

Commercial trade serves as a medium through which gender norms can be transmitted across countries (iStock)

Globalisation may have been found to increase gender equality in the workplace, but far less is known about why this is the case and whether its benefits are distributed equally.

Firms that export or are owned by parent companies overseas have a higher proportion of full-time, permanent women workers than firms that operate only in national markets, a new report by Vienna University of Economics and Business has found.

Researchers discovered this was particularly true among exporters with customers in nations with higher levels of gender equality – with such firms employing six to seven percentage points more female workers.

Professor Alyssa Schneebaum, who carried out the research, said: “What we see here is a ‘race to the top’, meaning that global firms adopt more equal hiring practices compared to non-global firms if they interact commercially with more gender-equal economies. There seems to be no evidence of a race to the bottom, that is, gender inequality isn’t imported through commercial links with gender-unequal countries.

“These results are important because they show how commercial trade serves as a medium through which gender norms can be transmitted across countries. However, we do find that for more prestigious jobs, it will take more than just commercially base exposure to norms of equality to get more women into management positions.”

Alessandra Bonfiglioli, a macroeconomist based at Queen Mary University of London who was not involved in the study, told The Independent the findings are interesting.

The professor added: “I like to think globalisation brings opportunities to close the gender gap. A recent study of mine focusing on German data providing very detailed information, reveals a more nuanced picture. Comparing female and male employees working in the same firm and sharing the same characteristics, such as experience, education and age, we show that an increase in their employer’s export raises the wage of female white-collar workers relative to their male colleagues, while it reduces the wage of female blue-collar workers.

“This suggests that globalisation brings opportunities for women, but only those who are engaged in occupations that require a certain degree of education and interactive skills. This is in line with the concept that globalisation favours the comparative advantage of women in brain-intensive and interaction-intensive occupations.”

Prof Bonfiglioli said it was not yet clear how Brexit will affect these issues and its impact is dependent on how it affects “Britain’s comparative advantage in sectors that need ‘female’ skills the most”.

She added: “In general, if trade volumes plunge in the short run, I would expect the gender gap to increase, at least among white collars, since trade with the EU is especially in sectors with a high intensity of non-production workers. However, it may also be the case that women prove essential to keep doing business with foreign customers, in which case opportunities may arise to close the gender gap.”