IDEAS home Printed from https://ideas.repec.org/a/kap/iaecre/v22y2016i2d10.1007_s11294-016-9574-z.html
   My bibliography  Save this article

Decomposing Gender Wage Differentials Using Quantile Regression: Evidence from the Lebanese Banking Sector

Author

Listed:
  • Abdallah Dah

    (Lebanese American University)

  • Ali Fakih

    (Lebanese American University)

Abstract

This paper investigates gender pay inequality in the labor market of a developing country. Our empirical investigation uses data derived from a sample of employees in the Lebanese banking sector for the years 2008 and 2014. Using Blinder-Oaxaca decomposition, the results reveal that the unexplained component of the gender wage gap, attributed to discrimination, represents a substantial share of the total gap. A surprising result is that the contribution of human capital to the gender wage gap is negative, suggesting that wage discrimination is the main explanation for the gap. Utilizing the Machado-Mata methodology to decompose the wage gap across the entire wage distribution, our findings indicate that the unexplained component of the raw gender wage gap is more pronounced at the low and middle ranges of the distribution. However, the explained component dominates at the top of the distribution, suggesting that earnings gaps are fully explained by observed characteristics.

Suggested Citation

  • Abdallah Dah & Ali Fakih, 2016. "Decomposing Gender Wage Differentials Using Quantile Regression: Evidence from the Lebanese Banking Sector," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 22(2), pages 171-185, May.
    • Handle: RePEc:kap:iaecre:v:22:y:2016:i:2:d:10.1007_s11294-016-9574-z
    DOI: 10.1007/s11294-016-9574-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11294-016-9574-z
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11294-016-9574-z?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Evangelia Papapetrou, 2008. "Evidence on gender wage differentials in Greece," Economic Change and Restructuring, Springer, vol. 41(2), pages 155-166, June.
    2. Hugo Ñopo, 2008. "Matching as a Tool to Decompose Wage Gaps," The Review of Economics and Statistics, MIT Press, vol. 90(2), pages 290-299, May.
    3. Murphy, Kevin M & Welch, Finis, 1990. "Empirical Age-Earnings Profiles," Journal of Labor Economics, University of Chicago Press, vol. 8(2), pages 202-229, April.
    4. International Labour Office., 2012. "Global employment trends 2012 : preventing a deeper jobs crisis," Global Employment Trends Reports 994679843402676, International Labour Office, Economic and Labour Market Analysis Department.
    5. Alejandro Badel & Ximena Peña, 2010. "Decomposing the Gender Wage Gap with Sample Selection Adjustment: Evidence from Colombia," Revista de Analisis Economico – Economic Analysis Review, Universidad Alberto Hurtado/School of Economics and Business, vol. 25(2), pages 169-191, Diciembre.
    6. Jolliffe, Dean & Campos, Nauro F., 2005. "Does market liberalisation reduce gender discrimination? Econometric evidence from Hungary, 1986-1998," Labour Economics, Elsevier, vol. 12(1), pages 1-22, February.
    7. Judith Fields & Edward N. Wolff, 1995. "Interindustry Wage Differentials and the Gender Wage Gap," ILR Review, Cornell University, ILR School, vol. 49(1), pages 105-120, October.
    8. 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.
    9. Tamar Khitarishvili, 2009. "Explaining the Gender Wage Gap in Georgia," Economics Working Paper Archive wp_577, Levy Economics Institute.
    10. Richard W. Johnson & David Neumark, 1997. "Age Discrimination, Job Separations, and Employment Status of Older Workers: Evidence from Self-Reports," Journal of Human Resources, University of Wisconsin Press, vol. 32(4), pages 779-811.
    11. Tony Fang & Jelena Zikic & Milorad M. Novicevic, 2009. "Career success of immigrant professionals: stock and flow of their career capital," International Journal of Manpower, Emerald Group Publishing Limited, vol. 30(5), pages 472-488, August.
    12. 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.
    13. José Mata & José A. F. Machado, 2005. "Counterfactual decomposition of changes in wage distributions using quantile regression," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(4), pages 445-465.
    14. Ali Fakih & Pascal Ghazalian, 2015. "Female employment in MENA’s manufacturing sector: the implications of firm-related and national factors," Economic Change and Restructuring, Springer, vol. 48(1), pages 37-69, February.
    15. Milica Kecmanovic & Garry F Barrett, 2011. "The Gender Wage Gap during Serbia's Transition," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 53(4), pages 695-720, December.
    16. Astrid Kunze, 2008. "Gender wage gap studies: consistency and decomposition," Empirical Economics, Springer, vol. 35(1), pages 63-76, August.
    17. Heinze, Anja, 2010. "Beyond the mean gender wage gap: Decomposition of differences in wage distributions using quantile regression," ZEW Discussion Papers 10-043, ZEW - Leibniz Centre for European Economic Research.
    18. Reva, Anna, 2012. "Gender inequality in the labor market in Serbia," Policy Research Working Paper Series 6008, The World Bank.
    19. Sergio Scicchitano, 2014. "The gender wage gap among Spanish managers," International Journal of Manpower, Emerald Group Publishing Limited, vol. 35(3), pages 327-344, May.
    20. Seyed Moaven Razavi & Nader Habibi, 2014. "Decomposition of gender wage differentials in Iran: an empirical study based on household survey data," Journal of Developing Areas, Tennessee State University, College of Business, vol. 48(2), pages 185-204, April-Jun.
    21. 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.
    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. Dutta, Anupam & Bouri, Elie & Rothovius, Timo & Uddin, Gazi Salah, 2023. "Climate risk and green investments: New evidence," Energy, Elsevier, vol. 265(C).
    2. Syed Jawad Hussain Shahzad & Elie Bouri & Ladislav Kristoufek & Tareq Saeed, 2021. "Impact of the COVID-19 outbreak on the US equity sectors: Evidence from quantile return spillovers," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-23, December.
    3. Chirine NASSAR & Corina Cristiana NASTACA & Ariana NASTASEANU, 2021. "Women’S Contribution To Economic Development And The Effects Of The Gender Pay Gap," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 13(2), pages 60-68, June.
    4. Bouri, Elie & Harb, Etienne, 2022. "The size of good and bad volatility shocks does matter for spillovers," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 80(C).
    5. Bouri, Elie & Gupta, Rangan & Nel, Jacobus & Shiba, Sisa, 2022. "Contagious diseases and gold: Over 700 years of evidence from quantile regressions," Finance Research Letters, Elsevier, vol. 50(C).
    6. Ali, Fahad & Bouri, Elie & Naifar, Nader & Shahzad, Syed Jawad Hussain & AlAhmad, Mohammad, 2022. "An examination of whether gold-backed Islamic cryptocurrencies are safe havens for international Islamic equity markets," Research in International Business and Finance, Elsevier, vol. 63(C).
    7. Gök, Remzi & Bouri, Elie & Gemici, Eray, 2022. "Can Twitter-based economic uncertainty predict safe-haven assets under all market conditions and investment horizons?," Technological Forecasting and Social Change, Elsevier, vol. 185(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. Fortin, Nicole & Lemieux, Thomas & Firpo, Sergio, 2011. "Decomposition Methods in Economics," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 1, pages 1-102, Elsevier.
    2. Tamar Khitarishvili, 2016. "Two tales of contraction: gender wage gap in Georgia before and after the 2008 crisis," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-28, December.
    3. Sloczynski, Tymon, 2015. "Average Wage Gaps and Oaxaca–Blinder Decompositions," IZA Discussion Papers 9036, Institute of Labor Economics (IZA).
    4. repec:pra:mprapa:48888 is not listed on IDEAS
    5. Zhu, Rong, 2016. "Wage differentials between urban residents and rural migrants in urban China during 2002–2007: A distributional analysis," China Economic Review, Elsevier, vol. 37(C), pages 2-14.
    6. Dohmen, Thomas & Lehmann, Hartmut & Zaiceva, Anzelika, 2008. "The gender earnings gap inside a Russian firm : first evidence from personnel data - 1997 to 2002," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(2/3), pages 157-179.
    7. Philippe Van Kerm, 2013. "Generalized measures of wage differentials," Empirical Economics, Springer, vol. 45(1), pages 465-482, August.
    8. Tamar Khitarishvili, 2013. "Evaluating the Gender Wage Gap in Georgia, 2004 - 2011," Economics Working Paper Archive wp_768, Levy Economics Institute.
    9. Sloczynski, Tymon, 2018. "Average Gaps and Oaxaca's Blinder Decompositions: A Cautionary Tale about Regression Estimates of Racial Differences in Labor Market Outcomes," IZA Discussion Papers 12041, Institute of Labor Economics (IZA).
    10. Norberto Pignatti, 2012. "Gender wage gap dynamics in a changing Ukraine," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-44, December.
    11. Tymon Słoczyński, 2020. "Average Gaps and Oaxaca–Blinder Decompositions: A Cautionary Tale about Regression Estimates of Racial Differences in Labor Market Outcomes," ILR Review, Cornell University, ILR School, vol. 73(3), pages 705-729, May.
    12. Antón, José-Ignacio & Muñoz de Bustillo, Rafael, 2013. "Public-private sector wage differentials in Spain. An updated picture in the midst of the Great Recession," MPRA Paper 48897, University Library of Munich, Germany.
    13. Tamar Khitarishvili, 2018. "Gender Pay Gaps in the Former Soviet Union: A Review of the Evidence," Economics Working Paper Archive wp_899, Levy Economics Institute.
    14. Seneviratne, Prathi, 2020. "Gender wage inequality during Sri Lanka’s post-reform growth: A distributional analysis," World Development, Elsevier, vol. 129(C).
    15. Karolina Goraus Tanska & Joanna Tyrowicz & Lucas Augusto van der Velde, 2020. "How rankings disguise gender inequality: A comparative analysis of cross-country gender equality rankings based on adjusted wage gaps," PLOS ONE, Public Library of Science, vol. 15(11), pages 1-21, November.
    16. Gomes, Magno Rogério & Souza, Solange de Cássia Inforzato de & Mantovani, Gabriela Gomes & Paiva, Vanessa Fortunato de, 2020. "Wage gap decomposition models: A methodological contribution," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 39(2), March.
    17. Gomes, Magno Rogério & Souza, Solange de Cássia Inforzato de & Mantovani, Gabriela Gomes & Paiva, Vanessa Fortunato de, 2019. "Wage gap decomposition models: A methodological contribution," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 39(2).
    18. Paul Carrillo & Néstor Gandelman & Virginia Robano, 2014. "Sticky floors and glass ceilings in Latin America," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(3), pages 339-361, September.
    19. Joanna Tyrowicz & Lucas van der Velde, 2017. "When the opportunity knocks: large structural shocks and gender wage gaps," GRAPE Working Papers 2, GRAPE Group for Research in Applied Economics.
    20. John Ariza & Gabriel Montes-Rojas, 2019. "Decomposition methods for analyzing inequality changes in Latin America 2002–2014," Empirical Economics, Springer, vol. 57(6), pages 2043-2078, December.
    21. Nancy Daza & Luis Fernando Gamboa, 2013. "Informal-formal wage gaps in Colombia," Working Papers 301, ECINEQ, Society for the Study of Economic Inequality.

    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:kap:iaecre:v:22:y:2016:i:2:d:10.1007_s11294-016-9574-z. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.