Trade in appliances, household production, and labor force participation
Pamela Medina et al.
Abstract
We examine how trade influences female labor supply through reductions in the prices of household appliances that substitute for domestic labor. Using a comprehensive data set from 1981 to 2017, which includes four population censuses, household surveys, and customs records from Peru, we show that labor force participation rose at the same time that appliance import prices fell. We then develop and estimate a dynamic general equilibrium model of trade and household production, to quantitatively evaluate the aggregate impact of declining appliance prices. We find that the reduction in appliance prices during the sample period leads to an increase in female labor force participation that explains one tenth of the total rise in female labor participation in Peru over the past 30 years.
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.50 × 0.4 = 0.20 |
| M · momentum | 0.50 × 0.15 = 0.07 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.