Re-examining Gender Earning Differentials in Malaysian Manufacturing

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.

Do Women Respond Less to Performance Pay? Building Evidence from Multiple Experiments

Existing empirical work raises the hypothesis that performance pay—whatever its output gains—may widen the gender earnings gap because women may respond less to incentives. We evaluate this possibility by aggregating evidence from existing experiments on performance incentives with male and female subjects. Using a Bayesian hierarchical model, we estimate both the average effect and heterogeneity across studies. We find that the gender response difference is close to zero and heterogeneity across studies is small, while performance pay increases output by 0.36 standard deviations on average. The data thus support agency theory for men and women alike. (JEL C11, C90, J16, J31, J33)

Gender Earnings Gap among Urban Youth Adults in Bangladesh: A Comparative Static Analysis

Despite the importance and recognition of young women's engagement in income-generating activities for socio-economic development, the gender earnings gap still persists across countries, especially in developing countries like Bangladesh. This study presents two datasets from the most recent past to provide fresh evidence for Bangladesh’s urban labor market that has yet to be closely studied. Using individual-level data from the BBS’s (Bangladesh Bureau of Statistics) Labour Force Surveys (LFS) conducted in 2010 and 2015, we have explored the gender earnings gap among the youth (aged 18 to 35 as per Bangladesh’s National Youth Policy 2017) working and earning in the urban labor markets of Bangladesh by applying the three approaches: Mincerian regression, Oaxaca-Blinder decomposition and Quantile regression. The first approach confirms that young women earn significantly less than young men in the urban labor markets after controlling the influences of the covariates. The detailed decomposition results of the second approach indicate that gender differences in hours worked, education, firm characteristics and locations also contribute to the gender earnings gap and the market discrimination against the youth women’s earnings remain the same over the years. The third approach using the lens of distribution perspective shows that earnings gaps persist up to the 25th percentile of distribution in 2010 though it persists across the entire earnings distribution in 2015. The results suggest that engaging more women in income-generating activities, increasing the number of hours worked, improving access to higher education and creating enabling working environment for women might reduce the gender earnings gap.

Electoral Competition, Voter Bias, and Women in Politics

We quantify the implications of voter bias and electoral competition for politicians’ gender composition. Unfavorable voters’ attitudes toward women and local gender earnings gap correlate negatively with the share of female candidates in Parliamentary elections. Using within-candidate variation across the different polling stations of an electoral district in a given election year, we find that female candidates obtain fewer votes in municipalities with higher gender earnings gaps. We show theoretically that when voters are biased against women, parties facing gender quotas select male candidates in the most contestable districts. We find empirical support for such a strategic party response to voter gender bias. Simulating our calibrated model confirms that competition significantly hinders the effectiveness of gender quotas.

Post-Secondary Education in Canada: Can Ability Bias Explain the Earnings Gap Between College and University Graduates?

Post-Secondary Education in Canada: Can Ability Bias Explain the Earnings Gap Between College and University Graduates? Using the Canadian General Social Survey we compute returns to post-secondary education relative to high-school. Unlike previous research using Canadian data, our dataset allows us to control for ability selection into higher education. We find strong evidence of positive ability selection into all levels of post-secondary education for men and weaker positive selection for women. Since the ability selection is stronger for higher levels of education, particularly for university, the difference in returns between university and college or trades education decreases slightly after accounting for ability bias. However, a puzzling large gap persists, with university-educated men still earning over 20% more than men with college or trades education. Moreover, contrary to previous Canadian literature that reports higher returns for women, we document that the OLS hourly wage returns to university education are the same for men and women. OLS returns are higher for women only if weekly or yearly wages are considered instead, because university-educated women work more hours than the average. Nevertheless, once we account for ability selection into post-secondary education, we generally find higher returns for women than for men for all wage measures as a result of the stronger ability selection for men.

Post-Secondary Education in Canada: Can Ability Bias Explain the Earnings Gap Between College and University Graduates?

Post-Secondary Education in Canada: Can Ability Bias Explain the Earnings Gap Between College and University Graduates?