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Gender Wage Gap

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Gender Wage Gap
Each market has buyers and sellers, thus in the labor market, the buyers are the employers and the sellers are the workers. Hence, the labor market deals with the allocation of workers to jobs and coordinates employment decisions (Ehrenberg & Smith, 2012). In studying labor market, demand for and supply of labor are analysed to determine labor market outcomes in terms of employment and the levels of employment. The demand side of the labor market consists of the employers while the supply side of the labor market are the workers and the potential workers. The equilibrium of the demand and the supply determine the wage rate. Wages are given as the price of labor for the work done by an individual and the reward for the investment on the human capital of the worker. However, inequality in the …show more content…
The issue of gender wage gap had been the focused of several studies in the Philippines. According to the 2013 report of the Asian Development Bank, there is a 29% gender gap between men and women in the labor force in the country. The lower labor force participation rate of women as compared to men is represented by underutilization of women’s labor in the paid labor market. The said underutilization might be caused by inferior employment and decent work opportunities, human capital differences, and unpaid domestic labor and care constraints.

In the international literature, a vast number of empirical studies about labor market gender inequalities that focus on wage gaps have been extensively studied however, the main issue is to understand whether the gender wage gap is explained by gender differences in the distribution of personal characteristics (such as age and education) or due to a discriminatory remuneration of apparently identical characteristics. To account for the “explained” and “unexplained” components of the wage gap, separate wage regressions are estimated for men and for
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