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Gender Wage Discrimination in Rural and Urban Labour Markets of Bangladesh

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  • Salma Ahmed
  • Pushkar Maitra

Abstract

Female wages in Bangladesh are significantly lower than male wages. This paper quantifies the extent to which discrimination can explain this gender wage gap across the rural and urban labour markets of Bangladesh, using unit record data from the 1999-2000 Labour Force Survey. The gender wage differential is decomposed into a component that can be explained by differences in productive characteristics and a component not explained by observable productive differences, which is attributed to discrimination. An attempt is also made to improve on the standard methodology by implementing a wage-gap decomposition method that accounts for selectivity bias, on top of the usual “explained” and “unexplained” components. Analytical results from this paper show that gender wage differentials are considerably larger in urban areas than in rural areas and a significant portion of this wage differential can be attributed to discrimination against women. The results also show that selectivity bias is an important component of total discrimination.

Suggested Citation

  • Salma Ahmed & Pushkar Maitra, 2010. "Gender Wage Discrimination in Rural and Urban Labour Markets of Bangladesh," Oxford Development Studies, Taylor & Francis Journals, vol. 38(1), pages 83-112.
  • Handle: RePEc:taf:oxdevs:v:38:y:2010:i:1:p:83-112 DOI: 10.1080/13600810903551611
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    References listed on IDEAS

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    1. Lino Briguglio & Gordon Cordina & Nadia Farrugia & Stephanie Vella, 2009. "Economic Vulnerability and Resilience: Concepts and Measurements," Oxford Development Studies, Taylor & Francis Journals, pages 229-247.
    2. Gordon Cordina, 2004. "Economic Vulnerability And Economic Growth: Some Results From A Neo-Classical Growth Modelling Approach," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 29(2), pages 21-39, December.
    3. Briguglio, Lino, 1995. "Small island developing states and their economic vulnerabilities," World Development, Elsevier, vol. 23(9), pages 1615-1632, September.
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    Citations

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    Cited by:

    1. Ahmed, Salma & McGillivray, Mark, 2015. "Human Capital, Discrimination, and the Gender Wage Gap in Bangladesh," World Development, Elsevier, vol. 67(C), pages 506-524.
    2. Rahman, Rushidan I. & Islam, Rizwanul., 2013. "Female labour force participation in Bangladesh : trends, drivers and barriers," ILO Working Papers 994834893402676, International Labour Organization.
    3. Salma Ahmed & Pushkar Maitra, 2015. "A Distributional Analysis of the Gender Wage Gap in Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 51(11), pages 1444-1458, November.
    4. World Bank, 2016. "Bangladesh Social Protection and Labor Review," World Bank Other Operational Studies 25265, The World Bank.
    5. Ahmed, Salma, 2015. "Dynamics and diversity: How are religious minorities faring in the labour Market in Bangladesh?," MPRA Paper 75153, University Library of Munich, Germany, revised 18 Nov 2016.
    6. Nordman, Christophe Jalil & Sarr, Leopold & Sharma, Smriti, 2015. "Cognitive, Non-Cognitive Skills and Gender Wage Gaps: Evidence from Linked Employer-Employee Data in Bangladesh," IZA Discussion Papers 9132, Institute for the Study of Labor (IZA).
    7. repec:ilo:ilowps:483489 is not listed on IDEAS
    8. McIntyre, Lynn & Rondeau, Krista & Kirkpatrick, Sharon & Hatfield, Jennifer & Islam, Khaled Shamsul & Huda, Syed Nazmul, 2011. "Food provisioning experiences of ultra poor female heads of household living in Bangladesh," Social Science & Medicine, Elsevier, pages 969-976.
    9. Zhou, Mo & Nelson, Robert, 2017. "Gender Wage Gap and Discrimination in Developing Countries," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252727, Southern Agricultural Economics Association.

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