Gary Becker's theory of discrimination argues that increasing competition will reduce discrimination in the labor … market. We use the Colombian trade liberalization episode over the period 198491 to investigate this claim on plant … increase in foreign competition due to unilateral trade liberalization disproportionately drove discriminating plants out of …

This article investigates how trade liberalization affects gender and racial pay inequalities in the short run. Guided …'s trade liberalization process (1988–95) as a natural experiment. On average, liberalization increased wages of nonwhite women … the wage distribution, we find that liberalization reduced racial and gender discrimination at low wages, which mitigated …