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Wage Determination and Gender Discrimination in Uganda

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  • Ssebagala, Richard
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    Abstract

    This study examines male-female wage determination and gender discrimination in Uganda. The study used the nationally representative household survey 2002/03 collected by Uganda bureau of statistics. It was found out that male-female wage gap is about 39%. Wages for both males and females are estimated by implementing a Heckman selection model. Heckman selection model was employed to correct for selectivity at the stage of entrance into the labour market. Estimations from the wage equations both for men and women with sample and sector selection highlight the relevance of human capital, demographic factors and regional labour market segmentation in wage determination. The results from the gender wage gap decomposition using Oaxaca (1973) and Neumark decomposition indicate larger wage differential attributed to discrimination and that the largest component of the unexplained wage gap stems from female disadvantage. The study recommends policies that reduce gender inequalities, particularly those policies that have a positive impact on the empowerment of women who suffer from discrimination like access to education, work environment that encourage equal treatment in labour market.

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    Bibliographic Info

    Paper provided by Economic Policy Research Centre (EPRC) in its series Research Series with number 150483.

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    Date of creation: May 2007
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    Handle: RePEc:ags:eprcrs:150483

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    Keywords: women; labour; eprc; female labour; Community/Rural/Urban Development; Financial Economics; Industrial Organization; Labor and Human Capital;

    References

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    1. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492 National Bureau of Economic Research, Inc.
    2. Francine D. Blau & Lawrence M. Kahn, 2000. "Gender Differences in Pay," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 75-99, Fall.
    3. Neuman, Shoshana & Oaxaca, Ronald L, 1998. "Estimating Labour Market Discrimination with Selectivity Corrected Wage Equations: Methodological Considerations and an Illustration from Israel," CEPR Discussion Papers 1915, C.E.P.R. Discussion Papers.
    4. Bennell, Paul, 1996. "Rates of return to education: Does the conventional pattern prevail in sub-Saharan Africa?," World Development, Elsevier, vol. 24(1), pages 183-199, January.
    5. Christophe Nordman & François Roubaud, 2005. "Reassessing the Gender Wage Gap: Does Labour Force Attachment Really Matter? Evidence from Matched Labour Force and Biographical Surveys in Madagascar," Working Papers 16, ECINEQ, Society for the Study of Economic Inequality.
    6. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    7. David Neumark, 1987. "Employers' discriminatory behavior and the estimation of wage discrimination," Special Studies Papers 227, Board of Governors of the Federal Reserve System (U.S.).
    8. James D. Gwartney & James E. Long, 1978. "The relative earnings of blacks and other minorities," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 31(3), pages 336-346, April.
    9. Gronau, Reuben, 1974. "Wage Comparisons-A Selectivity Bias," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1119-43, Nov.-Dec..
    10. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    11. Dolton, P J & Makepeace, G H & Van Der Klaauw, W, 1989. "Occupational Choice and Earnings Determination: The Role of Sample Selection and Non-pecuniary Factors," Oxford Economic Papers, Oxford University Press, vol. 41(3), pages 573-94, July.
    12. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
    13. George Psacharopoulos, 1985. "Returns to Education: A Further International Update and Implications," Journal of Human Resources, University of Wisconsin Press, vol. 20(4), pages 583-604.
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