Examining the Gender Pay Gap among Youth: Insights from Egypt, Jordan and Palestine

This paper examines the gender pay gap among young people aged 15-29 in Egypt, Jordan, and Palestine. Using data from the 2021 Labor Force Surveys (LFS) of the three countries, the analysis explores the factors influencing wages for both young men and women and estimates the extent of the gender pay gap. We use the Oaxaca-Blinder decomposition to identify the portion of the wage gap due to observable characteristics versus discrimination. To further understand how the gap changes across the income distribution, we apply Melly's (2005, 2006) quantile decomposition, analyzing wage disparities from the 10th to the 90th percentile. The results of this study reveal a positive correlation between youth wages and factors such as higher educational attainment and professional experience. The findings also reveal a significant gender pay gap favoring male youth in Egypt and Palestine, with Egypt showing the largest disparity. In Jordan, the gap is minimal and statistically insignificant, with female youth slightly out-earning male youth on average. However, the Oaxaca-Blinder decomposition across all countries, including Jordan, demonstrates a significant positive discrimination effect, indicating that disparities persist due to discrimination even after adjusting for observable characteristics. Additionally, the quantile analysis uncovers (sticky floor) effects in Egypt, where the gap is larger at lower wage levels, and (glass ceiling) effects in Palestine, where disparities widen at higher income levels. Lastly, the present study provides practical recommendations to address these disparities and promote gender equality among young workers.