IDEAS home Printed from https://ideas.repec.org/a/bla/asiaec/v31y2017i4p381-401.html
   My bibliography  Save this article

Occupational Segregation and Gender Wage Differentials: Evidence from Malaysia

Author

Listed:
  • Rahmah Ismail
  • Maryam Farhadi
  • Chung‐Khain Wye

Abstract

In Malaysia, the participation of women in the labor market has increased over time. However, occupational segregation and wage differentials continue to be prevalent between men and women in the labor market. The present paper investigates gender‐related occupational segregation and wage differentials based on data collected from 7135 working households in Peninsular Malaysia in 2011. The wage decomposition model introduced by Brown et al. (1980) is used to examine the determinants of gender‐related wage differentials. The results suggest that differences within occupations account for the largest portion of the wage gap between men and women. The results also indicate that wage discrimination within occupations plays an important role in the gender wage gap, while sample selection bias plays an important role in the examination of gender wage gaps.

Suggested Citation

  • Rahmah Ismail & Maryam Farhadi & Chung‐Khain Wye, 2017. "Occupational Segregation and Gender Wage Differentials: Evidence from Malaysia," Asian Economic Journal, East Asian Economic Association, vol. 31(4), pages 381-401, December.
  • Handle: RePEc:bla:asiaec:v:31:y:2017:i:4:p:381-401
    DOI: 10.1111/asej.12136
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/asej.12136
    Download Restriction: no

    File URL: https://libkey.io/10.1111/asej.12136?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Antonczyk, Dirk & Fitzenberger, Bernd & Sommerfeld, Katrin, 2010. "Rising wage inequality, the decline of collective bargaining, and the gender wage gap," Labour Economics, Elsevier, vol. 17(5), pages 835-847, October.
    2. Xin Meng, 1998. "Gender occupational segregation and its impact on the gender wage differential among rural-urban migrants: a Chinese case study," Applied Economics, Taylor & Francis Journals, vol. 30(6), pages 741-752.
    3. Zheng Fang & Chris Sakellariou, 2011. "A Case of Sticky Floors: Gender Wage Differentials in Thailand," Asian Economic Journal, East Asian Economic Association, vol. 25(1), pages 35-54, March.
    4. Meng, Xin & Shen, Kailing & Xue, Sen, 2013. "Economic reform, education expansion, and earnings inequality for urban males in China, 1988–2009," Journal of Comparative Economics, Elsevier, vol. 41(1), pages 227-244.
    5. 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.
    6. Ge, Yuhao & Li, Hongbin & Zhang, Junsen, 2011. "Gender earnings gaps in Hong Kong: Empirical evidence from across the earnings distribution in 2006," China Economic Review, Elsevier, vol. 22(1), pages 151-164, March.
    7. Constant, Amelie F. & Zimmermann, Klaus F., 2003. "Occupational Choice Across Generations," IZA Discussion Papers 975, Institute of Labor Economics (IZA).
    8. Ueshima, Yasuhiro, 2003. "Why wages equalized in the high-speed growth era:: Japanese manufacturing, 1961-1969," Journal of the Japanese and International Economies, Elsevier, vol. 17(1), pages 33-54, March.
    9. Petit, Pascale, 2007. "The effects of age and family constraints on gender hiring discrimination: A field experiment in the French financial sector," Labour Economics, Elsevier, vol. 14(3), pages 371-391, June.
    10. Gale Summerfield & Xiao-yuan Dong & Nahid Aslanbeigui & Jie Hu, 2011. "Wage Differentials, Occupational Segregation, and Gendered Creativity Perceptions in the Chinese Science and Technology Sector: Beijing and Wuhan," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 37(2), pages 178-196.
    11. Robert H. Topel, 1997. "Factor Proportions and Relative Wages: The Supply-Side Determinants of Wage Inequality," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 55-74, Spring.
    12. Antecol, Heather & Cobb-Clark, Deborah A., 2013. "Do psychosocial traits help explain gender segregation in young people's occupations?," Labour Economics, Elsevier, vol. 21(C), pages 59-73.
    13. Chi, Wei & Li, Bo, 2008. "Glass ceiling or sticky floor? Examining the gender earnings differential across the earnings distribution in urban China, 1987-2004," Journal of Comparative Economics, Elsevier, vol. 36(2), pages 243-263, June.
    14. Liu, Pak-Wai & Zhang, Junsen & Chong, Shu-Chuen, 2004. "Occupational segregation and wage differentials between natives and immigrants: evidence from Hong Kong," Journal of Development Economics, Elsevier, vol. 73(1), pages 395-413, February.
    15. Palomino, Frédéric & Peyrache, Eloïc-Anil, 2010. "Psychological bias and gender wage gap," Journal of Economic Behavior & Organization, Elsevier, vol. 76(3), pages 563-573, December.
    16. Frédéric Palomino & Eloïc-Anil Peyrache, 2010. "Psychological Bias and Gender Wage Gap," Post-Print hal-00911836, HAL.
    17. Le, Anh T. & Miller, Paul W. & Slutske, Wendy S. & Martin, Nicholas G., 2011. "Attitudes towards economic risk and the gender pay gap," Labour Economics, Elsevier, vol. 18(4), pages 555-561, August.
    18. repec:wyi:journl:002165 is not listed on IDEAS
    19. Frédéric Palomino & Eloïc Peyrache, 2010. "Psychological bias and gender wage gap," Post-Print hal-00586063, HAL.
    20. Siew Yean Teo, 2003. "Occupational Segregation and its Effect on Estimates of the Gender Wage Differential: Evidence from Brunei," Asian Economic Journal, East Asian Economic Association, vol. 17(4), pages 341-360, December.
    21. Chris Sakellariou, 2004. "Gender-Earnings Differentials Using Quantile Regressions," Journal of Labor Research, Transaction Publishers, vol. 25(3), pages 458-468, July.
    22. Michael Demoussis & N. Giannakopoulos & S. Zografakis, 2010. "Native-immigrant wage differentials and occupational segregation in the Greek labour market," Applied Economics, Taylor & Francis Journals, vol. 42(8), pages 1015-1027.
    23. Munasinghe, Lalith & Reif, Tania & Henriques, Alice, 2008. "Gender gap in wage returns to job tenure and experience," Labour Economics, Elsevier, vol. 15(6), pages 1296-1316, December.
    24. Randall S. Brown & Marilyn Moon & Barbara S. Zoloth, 1980. "Incorporating Occupational Attainment in Studies of Male-Female Earnings Differentials," Journal of Human Resources, University of Wisconsin Press, vol. 15(1), pages 3-28.
    25. William A. Darity & Patrick L. Mason, 1998. "Evidence on Discrimination in Employment: Codes of Color, Codes of Gender," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 63-90, Spring.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Muhammad Zaheer Khan & Rusmawati Said & Nur Syazwani Mazlan & Norashidah Mohamed Nor, 2023. "Measuring the occupational segregation of males and females in Pakistan in a multigroup context," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-11, December.
    2. Cuberes, David & Schmillen, Achim & Teignier, Marc, 2023. "The aggregate gains of eliminating gender and ethnic gaps in the Malaysian labor market," Journal of Asian Economics, Elsevier, vol. 87(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chen, Yiu Por (Vincent) & Zhang, Yuan, 2018. "A decomposition method on employment and wage discrimination and its application in urban China (2002–2013)," World Development, Elsevier, vol. 110(C), pages 1-12.
    2. Stijn Baert & Ann-Sophie De Pauw & Nick Deschacht, 2016. "Do Employer Preferences Contribute to Sticky Floors?," ILR Review, Cornell University, ILR School, vol. 69(3), pages 714-736, May.
    3. Orraca Romano, Pedro Paulo, 2016. "Essays on development and labour economics for Mexico," Economics PhD Theses 0816, Department of Economics, University of Sussex Business School.
    4. Pedro P. Orraca-Romano & Erika García-Meneses, 2016. "Why are the wages of the Mexican immigrants and their descendants so low in the United States?," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 31(2), pages 305-337.
    5. Ismail, Rahmah & Wye, Chung Khain & Mohd Palel, Nur Sabrina, 2017. "Analysis of Glass Ceiling and Sticky Floor Effects for Gender Wage Gap in Malaysian Labour Market," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 51(2), pages 131-142.
    6. Hansen, Henrik & Rand, John & Win, Ngu Wah, 2022. "The gender wage gap in Myanmar: Adding insult to injury?," Journal of Asian Economics, Elsevier, vol. 81(C).
    7. Deshpande, Ashwini & Goel, Deepti & Khanna, Shantanu, 2018. "Bad Karma or Discrimination? Male–Female Wage Gaps Among Salaried Workers in India," World Development, Elsevier, vol. 102(C), pages 331-344.
    8. Mario Lackner, 2021. "Gender differences in competitiveness," IZA World of Labor, Institute of Labor Economics (IZA), pages 236-236, November.
    9. Kataria, Mitesh, 2017. "How long do you think it will take? Field Evidence on Gender Differences in Time Optimism," Working Papers in Economics 694, University of Gothenburg, Department of Economics.
    10. Tushar Agrawal, 2013. "Are There Glass-Ceiling and Sticky-Floor Effects in India? An Empirical Examination," Oxford Development Studies, Taylor & Francis Journals, vol. 41(3), pages 322-342, September.
    11. Jonathan Haughton & Wendi Sun & Le Thi Thanh Loan, 2018. "Discrimination against Migrants in Urban Vietnam," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 24(3), pages 211-232, August.
    12. repec:ces:ifodic:v:15:y:2017:i:2:p:13-17 is not listed on IDEAS
    13. Debayan Pakrashi & Paul Frijters, 2017. "Migration and Discrimination in Urban China: A Decomposition Approach," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63(4), pages 821-840, December.
    14. Rulof Burger & Rachel Jafta, 2006. "Returns to Race: Labour Market Discrimination in Post-Apartheid South Africa," Working Papers 04/2006, Stellenbosch University, Department of Economics.
    15. Siew, Ching Goy & Johnes, Geraint, 2012. "Revisiting The Impact of Occupational Segregation on the Gender Earnings Gap in Malaysia," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 46(1), pages 13-25.
    16. Michael Weber & Jan Kluge, 2015. "Decomposing the German East-West wage gap," ERSA conference papers ersa15p636, European Regional Science Association.
    17. Myeong-Su Yun & Eric S. Lin, 2015. "Alternative Estimator for Industrial Gender Wage Gaps: A Normalized Regression Approach," Pacific Economic Review, Wiley Blackwell, vol. 20(4), pages 569-587, October.
    18. Jan Kluge & Michael Weber, 2018. "Decomposing the German East–West wage gap," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 26(1), pages 91-125, January.
    19. Samuel Adams & Fanny Adams Quagrainie & Edem Kwame Mensah Klobodu, 2014. "Psychological contract formation: The influence of demographic factors," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 17(3), pages 279-294, September.
    20. Pedro Orraca & Francisco Javier Cabrera & Gustavo Iriarte, 2016. "The gender wage gap and occupational segregation in the Mexican labour market," EconoQuantum, Revista de Economia y Negocios, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 13(1), pages 51-72, Enero-Jun.
    21. Pedro Orraca & Francisco-Javier Cabrera & Centro de Investigacion y Docencia Economicas A. C., 2016. "The gender wage gap and occupational segregation in the Mexican labour market," EconoQuantum, Revista de Economia y Finanzas, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 13(1), pages 51-72, Enero-Jun.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:asiaec:v:31:y:2017:i:4:p:381-401. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/eaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.