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Determinants of the gender wage gap in Pakistan

Author

Listed:
  • Azhar Iqbal Malik

    (Ministry of Planning Development and Special Initiatives)

  • Naeem Akram

    (Ministry of Planning Development and Special Initiatives)

Abstract

It is common perception that in comparison to men, Pakistani women are earning less. This paper fulfills the identified need to study why there exists gender wage gap in Pakistan. The present study attempted to analyze the existence of wage differentials in Pakistan using data of Pakistan’s Labour Force Survey (LFS) 2020–21 and estimated the ordered logit model. It has been found that gender, age, education level, location of work, marital status, additional benefits, and kind of employment play a significant role in determining wages in Pakistan. It has also been found that women earnings are lower than men and this disparity has increased with the passage of time. The most imperative reason of gender wage difference is women’s involvement in low-earning jobs. The findings are useful in devising policy measures for women empowerment and gender wage gap analysis.

Suggested Citation

  • Azhar Iqbal Malik & Naeem Akram, 2024. "Determinants of the gender wage gap in Pakistan," SN Business & Economics, Springer, vol. 4(2), pages 1-13, February.
    • Handle: RePEc:spr:snbeco:v:4:y:2024:i:2:d:10.1007_s43546-024-00623-8
    DOI: 10.1007/s43546-024-00623-8
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    More about this item

    Keywords

    Labour market; Wage differentials; Gender; Equity;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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