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The gender wage gap in Bangladesh: an application of Olsen and Walby simulation method

Author

Listed:
  • Anne Daly

    (University of Canberra)

  • Nafisa Anjum

    (University of Canberra)

Abstract

This article examines the gender wage gap in the formal public and private sectors in Bangladesh. The traditional Oaxaca method focuses on the explained and unexplained part of the wage gap; in this paper we use the Olsen and Walby (2004) simulation method which emphasises only the explained part of the wage gap. Using the Bangladesh Labour Force Survey 2005-2006, Bangladesh Bureau of Statistics data show formal-sector female employees earned about 32.1 per cent less than their male counterparts (2008). Using the Olsen and Walby (2004) simulation method for the first time in the Bangladeshi context, the results reported here show that age and educational differences and industrial and occupational segregation played important roles in explaining the gender pay gap in Bangladesh. However, being female’ was also an important determinant of lower female earnings. These results show the importance of policies to boost female education and training in Bangladesh. They also indicate the need for policies to promote female participation in the formal-sector workforce, including improvements in childcare and transport availability.

Suggested Citation

  • Anne Daly & Nafisa Anjum, 2019. "The gender wage gap in Bangladesh: an application of Olsen and Walby simulation method," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 22(1), pages 29-51.
    • Handle: RePEc:ozl:journl:v:22:y:2019:i:1:p:29-51
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    References listed on IDEAS

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    Cited by:

    1. Al Amin Al Abbasi & Mohammad Jahangir Alam & Subrata Saha & Ismat Ara Begum & Yu Sheng & Maria Fay Rola‐Rubzen, 2025. "Does Rural Transformation Reduce the Gender Wage Gap? An Empirical Study of Sustainable Development in Bangladesh," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(6), pages 8802-8820, December.
    2. Zhanhui Fu & Hongqiang Jiang & Jiajun Qiao & Xiaojun Jiang & Weichun He, 2023. "Gender Differences in Migrant Workers’ Wages and Their Influencing Factors in the Central Hilly Regions of China," Land, MDPI, vol. 12(7), pages 1-16, July.

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    Keywords

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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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