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Gender Wage Discrimination in Pakistan

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Gender Wage Discrimination in Pakistan
| 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 concentrate on ‘employer wage discrimination’. Following this our research will be aimed at discovering if women are paid less than their male counter-parts especially with the same set of characteristics. For this purpose we will use the Oaxaca-Blinder method to calculate the coefficient for discrimination across genders.
Literature Review
The basis of this paper is the work done by Oaxaca and Blinder in 1973 about wage discrimination models. In the paper ‘Interpreting the Decomposition of the Gender Earnings Gap’ (Giaimo R. 2007) this method has been applied to find out how different characteristics change the discriminatory behaviour of employers in Italy. Oaxaca’s method for calculating discrimination was further adapted in the paper ‘Gender Wage Discrimination at Quantiles’ (Javier Gardeazabal 2005), and was used to calculate discrimination coefficients for quintiles.
In a study conducted in India (Tilak 1980), it was found that the incidence of unemployment was higher for women than for men with the same characteristics. In this study the only characteristic that was taken was education. This is a different angle to look at discrimination from what this paper will do. Rather than looking at the unemployed, this paper will


Bibliography: Giaimo R., Bono F., Lo Magno G. L. “Interpreting the Decomposition of the Gender Earning Gap.” University of Palermo Journal, 2007. International Standard Industrial Classification of all Economic Activities (ISIC-Rev.2, 1968). ILO. 2012. http://laborsta.ilo.org/applv8/data/isic2e.html (accessed 2012). Javier Gardeazabal, Arantza Ugidos. “Gender Wage Discrimination at Quantiles.” Journal of Population Economics, 2005. Mats Johansson, Katarina Katz, Håkan Nyman. “Wage Differentials and Gender Discrimination: Changes in Sweden 1981-98.” Acta Sociologica, 2005. Stat. Stata. 2012. http://www.stata.com/meeting/5german/SINNING_stata_presentation.pdf. Tilak, Jandhyala B. G. “Education and Labour Market Discrimination.” Indian Journal of Industrial Relations , 1980. Appendix A Selectivity Bias Logit Regression Results: LFS 2008/09 LFS 2010/11
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