The Gender Side of Trade Shocks: Evidence from the Italian Labor Market

This paper investigates the gendered effects of trade liberalization on local labor markets in Italy, a country marked by low female labor force participation. Building on recent evidence that trade shocks can exacerbate or mitigate gender inequalities depending on labor market segmentation and institutional context, we examine how exposure to Chinese and Eastern European import competition has affected the labor market in Italy, with a focus on the gender discrepancies. We construct a shift-share measure of import exposure, exploiting variation in pre-existing industry specialization across provinces. Using labor-force survey and trade data with detailed labor market indicators, we assess whether observed gender gaps result from asymmetric dynamics between women and men, and how these patterns vary by sector, contract type, and skills. By providing new empirical evidence and a theoretical framework to interpret these patterns, our findings indicate that trade shocks tend to reinforce existing gender disparities in Italy, with effects concentrated in sectors characterized by high female employment shares and precarious job arrangements.