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Gender wage and productivity gaps in the Ethiopian manufacturing sector

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  • Melaku Abegaz
  • Gibson Nene

Abstract

The paper uses firm-level data to examine gender wage and productivity gaps in the Ethiopian manufacturing sector for the period 1996–2010. It investigates gender wage differentials between skilled and unskilled workers after controlling for factors affecting average wages. Our findings show significant gender wage and productivity gaps and the segregation of female workers into low-paying firms. Controlling for average productivity reduces the magnitude of the wage gap but does not eliminate it. However, results using a simultaneaous estimation of wage equation and production function at a firm-level indicate no significant difference between the gender wage and productivity gaps. As such, further investigation into the sources of the dual gaps using matched employer-employee data is necessary. The Ethiopian government should focus on skill development to improve the productivity of female workers and address the segregation of female workers into low-paying firms.

Suggested Citation

  • Melaku Abegaz & Gibson Nene, 2023. "Gender wage and productivity gaps in the Ethiopian manufacturing sector," Journal of Applied Economics, Taylor & Francis Journals, vol. 26(1), pages 2160139-216, December.
    • Handle: RePEc:taf:recsxx:v:26:y:2023:i:1:p:2160139
    DOI: 10.1080/15140326.2022.2160139
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    Cited by:

    1. Bedaso, Fenet Jima, 2024. "Occupational Segregation and the Gender Wage Gap: Evidence from Ethiopia," GLO Discussion Paper Series 1393, Global Labor Organization (GLO).

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