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Wage inequality in international perspective. Effects of location, sector, and gender

Author

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  • Hertz, Thomas
  • Winters, Paul
  • De la O, Ana Paula
  • Quiñones, Esteban J.
  • Davis, Benjamin
  • Zezza, Alberto

Abstract

This paper uses the well-known Oaxaca-Blinder decomposition technique to understand the determinants of wage-gaps between men and women, between urban and rural workers, and between those employed in the rural agricultural versus the rural non-agricultural sectors, for the 14 developing and transition economies in the RIGA-L dataset. The unexplained male-female wage gaps (i.e. the gaps that remain after controlling for a host of observable characteristics of the job and the worker) provide estimates of labor market discrimination against women that are consistent with prior estimates from other countries, and are generally similar in rural and urban areas. We argue that countries with large unexplained urban-rural gaps, such Tajikistan and Malawi, are those in which rural to urban migration is likely to persist even in face of high urban unemployment rates. Furthermore, we find that large unexplained wage gaps in favor of non-farm employment, versus paid labor in farming, exist in Tajikistan (53%), Ecuador (44%), Nepal (36%), Nicaragua (32%), and Nigeria (30%); these would then appear to be the countries for which a shift of existing workers, with their current attributes, from the farm to the non-farm sector would have the largest impact on rural incomes.

Suggested Citation

  • Hertz, Thomas & Winters, Paul & De la O, Ana Paula & Quiñones, Esteban J. & Davis, Benjamin & Zezza, Alberto, 2008. "Wage inequality in international perspective. Effects of location, sector, and gender," ESA Working Papers 289026, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    • Handle: RePEc:ags:faoaes:289026
    DOI: 10.22004/ag.econ.289026
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    Citations

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    Cited by:

    1. Juan Pablo Atal & Hugo Nopo & Natalia Winder, 2009. "New Century, Old Disparities: Gender and Ethnic Wage Gaps in Latin America," Research Department Publications 4640, Inter-American Development Bank, Research Department.
    2. Paweenawat, Sasiwimon Warunsiri & Liao, Lusi, 2022. "Parenthood penalty and gender wage gap: Recent evidence from Thailand," Journal of Asian Economics, Elsevier, vol. 78(C).
    3. Van den Broeck, Goedele & Kilic, Talip, 2019. "Dynamics of off-farm employment in Sub-Saharan Africa: A gender perspective," World Development, Elsevier, vol. 119(C), pages 81-99.
    4. Chandan Sharma & Sudharshan Reddy Paramati, 2018. "Measuring Inequality of Opportunity for the Backward Communities: Regional Evidence from the Indian Labour Market," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(2), pages 479-503, July.
    5. Yousef Daoud & Belal Fallah, 2016. "The differential impact of employment in agriculture on wages for rural and non-rural Palestine," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-19, December.
    6. Nopo, Hugo R. & Daza, Nancy & Ramos, Johanna, 2011. "Gender Earnings Gaps in the World," IZA Discussion Papers 5736, Institute of Labor Economics (IZA).
    7. Taiwo Aderemi & Ibrahim Alley, 2019. "Gender pay gap in the workplace: the case of public and private sectors in Nigeria," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 21(2), pages 370-391, December.
    8. Valientes, Rodger M., 2015. "Male-Female Wage-Gap Decomposition in Agriculture-Based Employment in the Philippines," Journal of Economics, Management & Agricultural Development, Journal of Economics, Management & Agricultural Development (JEMAD), vol. 1(1), June.
    9. Claudio Mancilla & Luz María Ferrada & Sergio Soza-Amigo & Adriano Rovira, 2022. "Labour Commutation in the Agricultural Sector—An Analysis of Agricultural Workers in Chile," Agriculture, MDPI, vol. 12(12), pages 1-16, December.
    10. Dorota Witkowska, 2013. "Gender Disparities in the Labor Market in the EU," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 19(4), pages 331-354, November.
    11. Muhammad Sohail Amjad Makhdum & Rakhshanda Kousar, 2021. "Gender in agriculture: Determinants of female labor supply decisions among rural households in the context of market imperfections in Pakistan," Agricultural Economics, International Association of Agricultural Economists, vol. 52(2), pages 235-248, March.

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