Gender Wage Discrimination in Pakistan - 1465 Words

| Gender Wage Discrimination in Pakistan | Evidence from Pakistan 2008/09 and 2010/11 | | | | Table of Contents Introduction 2 Literature Review 2 Methodology 3 Variables Used – Characteristics of Workers 5 Results 7 Discussion 7 Bibliography 8 Appendix A 9 Selectivity Bias Logit Regression Results: 9 Introduction This paper explores the dynamics of gender wage discrimination in Pakistan for two data sets; Labour Force Survey for the year 2008/09 and 2010/11. We will explore whether or not women are discriminated against, as it has been suggested for a predominantly Islamic country like Pakistan. Labour theory addresses many reasons for wage discrimination. For the purposes of this research we will†¦show more content†¦The signs of education are expected. For the data set of 2008/09, signs for education are positive which does not support theory. Even after efforts to remove multi-colinearity, they still show positive signs. Most of the variables in the regression are also insignificant. However, when we take the data for LFS 2010/11, and correct it for selectivity bias, we get much better results. Most of the variables are significant as well as show the correct signs. (The same algorithm was applied to both the data sets, and the same variables have been taken). Results of Logit models for correcting selectivity bias are attached in Appendix A. Variables Used – Characteristics of Workers Summary tables from LFS 2010/11 1. Age * Theory suggests that this is one of the most important determinants of people’s decision to work. 2. Marital Status * This variable was taken as a dummy variable in the regression. * It is a significant variable in the decision to work, especially in developing economies like Pakistan. 3. Province * This is also taken as a dummy. The Baluchistan province was omitted from this analysis. However, the calculations of the Oaxaca Blinder method take this omitted variable into account. This is because the method takes the vectors of the estimated regression equation. 4. Region * Whether a person is from a Rural or urban background has impact on theShow MoreRelatedEssay on Education: A Path to Gender Equality in Labor Markets1667 Words   |  7 Pagesparticipation or reinforcing gender equality in labor markets worldwide will lead to gains in productivity. However, what can be done to create gender equality? A study emphasized the equality of education. When education access to women is equal to men, occupation opportunities and earnings of men and women with similar education and experience are equal. A research in Pakistan and other studies are introduced. 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