Globalisation and the Gender Earnings Gap: Evidence from Sri Lanka and Cambodia

Using household and labour force surveys from Cambodia and Sri Lanka, we find large positive wage premiums and a closing of the male-female wage gap during the Multi-Fibre Arrangement (MFA) period, but smaller premiums and a widening wage gap after the end of the MFA. Our results suggest that apparel exports continued to benefit women in developing countries post-MFA but women – both in and out of the apparel industry – are susceptible to changes in global apparel prices.