scholarly journals Estimation of the Wage and Employment Equation Model on Urban Labor Market by the Simultaneous Maximum Likelihood Method

2017 ◽  
Vol 12 (4) ◽  
pp. 231
Author(s):  
Xiao Du ◽  
Zhang Hao
Keyword(s):  
Labor Market ◽  
Maximum Likelihood ◽  
Maximum Likelihood Method ◽  
Equation Model ◽  
Return Rate ◽  
Female Employment ◽  
Likelihood Method ◽  
Employment Elasticity ◽  
Urban Labor ◽  
Urban Labor Market

This paper estimates wage and employment equation model on urban labor market by the simultaneous maximum likelihood method with CHIP-2002. The results show: human capital, personal ability and father’s education background of a person will affect his/her market wage; Partner’s income and preschool children have a negative effect on female employment probability but have no effect on male employment probability; Female return rate to education is 9.65% and employment elasticity to wage is 1.27; Male return rate to education is 5.93% and employment elasticity to wage is 0.45; Conventional Heckman two step procedure and Probit MLE underestimate the return rate to education and employment elasticity to wage.

Re-examining Gender Earning Differentials in Malaysian Manufacturing

2022 ◽  
pp. 1-28
Author(s):  
Jia-Qi Cheong ◽  
Suresh Narayanan ◽  
Jacqueline Lisa Fernandez
Keyword(s):  
Labor Market ◽  
Interaction Effect ◽  
Manufacturing Sector ◽  
Participation Rate ◽  
Differential Treatment ◽  
Female Employment ◽  
Representative Survey ◽  
Earnings Gap ◽  
Urban Labor ◽  
Urban Labor Market

Abstract The manufacturing sector is a major avenue for female employment in the urban labor market in Malaysia. Only two studies, both published more than two decades ago, have examined gender earning differentials in this sector. Since then, the percentage of women being educated has increased, along with their participation rate, and several laws protecting their rights have also been passed, making it timely to re-examine the earnings gap. We do this by drawing on more recent data from a larger representative survey of manufacturing employees. The Blinder-Oaxaca technique, utilized in the previous two studies, was used to estimate the existing earnings gap and to decompose it to differences attributable to endowments, coefficients (traditionally viewed as subsuming discrimination), and the interaction between the two. We found a smaller gap than previously reported, with better female endowments helping to narrow the gap, and unexplained differences in coefficients being responsible for the remaining gap. The interaction effect was not statistically significant. Contrary to the earlier studies, the differential treatment of women in the manufacturing sector, rather than endowment differences, is hampering the equalization of earnings. This calls for newer approaches to closing the earnings gap.

Sign in / Sign up

Export Citation Format

Share Document