scholarly journals Gender wage gaps in Ghana: A comparison across different selection models

Author(s):  
Emmanuel Adu Boahen ◽  
Kwadwo Opoku

The wage of an individual is observed only when he/she is employed. However, getting employment requires two decisions. First, an individual has to decide to participate in the labour market, and second, an employer must decide to hire that individual. Since female labour market participation often differs from that of men, and employers’ decisions to hire may also be influenced by gender, it is appropriate to account for this double selection process. This study uses the latest household survey in Ghana to estimate gender wage gaps by correcting for this double selection process. We find that the average total gender wage gap is positive and significant irrespective of the sample selection correction method used. Our results indicate that women on average receive lower wages than men. Irrespective of the type of selection method used, our findings suggest that almost all the wage gap is a result of differences in returns, with only a small part coming from differences in observables. We find that the gender wage gap is smaller among formal wage employees and the gap decreases as education level increases. Although our findings indicate a similar trend in the wage gap across all specifications, the magnitude of the gap is sensitive to the choice of the model. This points to the need to be cautious about the choice of sample selection correction used to analyse gender wage gaps.

2007 ◽  
Vol 46 (4II) ◽  
pp. 865-882 ◽  
Author(s):  
Muhammad Sabir ◽  
Zehra Aftab

One of the main caveats of Pakistan’s economic development history is the persistence of gender inequality with respect to almost all socioeconomic indicators. For instance, Pakistan ranks 66, out of 75 countries, with respect to the Gender Empowerment Measure (Human Development Report, 2006) with a GEM value of 0.377, largely a manifestation of very low estimated female to male earned income ratio, which is a depressing 0.29. GEM and other labour force statistics confirm the gender gap in labour force participation. One of the possible explanations of this gender gap is gender discrimination in the labour market, particularly in wages. Evidence with respect to gender discrimination in Pakistan’s labour market is welldocumented. Siddique, et al. (2006), Nasir and Nazli (2000), Siddique, et al. (1998) and Ashraf and Ashraf (1993) all confirm that men earn higher wages than women even after controlling for measurable characteristics affecting their productivity. These studies, however, analyse the gender wage gap by comparing the mean male/female wage. Studies which compare the gender wage gap at different points along the wage distribution are not available for Pakistan.


Stanovnistvo ◽  
2021 ◽  
Vol 59 (2) ◽  
pp. 123-141
Author(s):  
Kosovka Ognjenovic

The aim of this paper is to determine the size, structure, and significance of the differences in wages between men and women during the early transition in Serbia in the 2000s. During that period, a new legislative framework was established in the field of labour relations, which enabled greater liberalisation in the labour market and resulted in a reduction in the activity rate, especially of women. Following the experiences of other post-transition countries, it may be expected that economic and social changes caused by the transitional shocks may stimulate different behaviours in the labour market of both the employers, through their impact on determination of wages, and the labour force, through workers? choice to remain or to permanently exit the labour market. This could affect not only the deepening of gender differences, but also the emergence of discrimination in wage setting. The paper applies the parametric sample selection model, on the basis of which the probability of women?s participation in the labour market is estimated, as well as the wage functions of men and women. Data from the Living Standards Measurement Survey for 2002 and 2007 are used. Theoretically expected results are obtained; children and marital status with a negative sign, and sources of non-working income with a positive sign influence the probability of women?s participation in the labour force. The estimated equations of wages of men and women indicate differences in the structure of wages, which provides the basis for the application of the statistical procedure for the decomposition of the gender wage gap. Examination of the initial hypothesis revealed the presence of a significant gender wage gap, which was the largest in 2002 (10.96%), falling to 5.97% in 2007. The gender wage gap in Serbia cannot be explained by the differences in the observed characteristics of men and women, since they act in the direction of reducing the overall gap and their effect is stable, amounting to between -5.51% (2002) and -5.43% (2007). Therefore, the decline in the gender wage gap is the result of reducing the gap in the unexplained part from 17.43% (2002) to 12.06% (2007). Over the observed period, the unexplained part of the gender wage gap remains persistent and leaves room for consideration of the potential effects of discrimination and possible directions of public policy.


2021 ◽  
Author(s):  
Kore Marc Antoine Guei

Abstract The paper assesses the impact of trade liberalization on the labour market by focusing on skill wage premium. The paper tests these effects by developing a monopolistic competition model with two factors of production characterized by their skill levels (skilled and unskilled labour). The paper finds that tariff’s level reductions cause a moderate increase in the wage gap. Thus, our analysis shows that a 10% decrease in tariffs is accompanied by a 16.1 % increase in the skill premium. Also, the same level of tariffs’ cut will on average increase the gender wage gap by 26.8%. The study implies that trade liberalization tends to benefit more workers in the skilled labour market compared to workers in the unskilled labour market.


2019 ◽  
Vol 20 (1) ◽  
pp. 106-123 ◽  
Author(s):  
Mustafizur Rahman ◽  
Md. Al-Hasan

This article undertakes an examination of Bangladesh’s latest available Quarterly Labour Force Survey 2015–2016 data to draw in-depth insights on gender wage gap and wage discrimination in Bangladesh labour market. The mean wage decomposition shows that on average a woman in Bangladesh earns 12.2 per cent lower wage than a man, and about half of the wage gap can be explained by labour market discrimination against women. Quantile counterfactual decomposition shows that women are subject to higher wage penalty at the lower deciles of the wage distribution with the wage gap varying between 8.3 per cent and 19.4 per cent at different deciles. We have found that at lower deciles, a significant part of the gender wage gap is on account of the relatively larger presence of informal employment. Conditional quantile estimates further reveal that formally employed female workers earn higher wage than their male counterparts at the first decile but suffer from wage penalty at the top deciles. JEL: C21, J31, J46, J70


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