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Public Pension Governance And Asset Allocation

  • Salma Ahmed
  • Pushkar Maitra
Registered author(s):

    Female wages in Bangladesh are significantly lower compared to male wages. This paper seeks to quantify the extent of discrimination in explaining this gender wage gap. We decompose the gender wage differential into a component that can be explained by differences in productive characteristics and a component unexplained by observable productive differences, which are attributed to discrimination. We examine this issue both for rural and urban areas in Bangladesh, using individual level unit record data. Methodologically, we use a number of different approaches to decompose the wage gap between the ???explained??? and the ???unexplained??? components. Our results show that gender wage differentials are considerably larger in urban areas compared to rural areas. The decomposition analysis suggests that a significant portion of this gender wage gap results from discrimination. We also find that failure to correct for sample selection bias leads to a significant under estimation of the gender wage gap in both rural and urban areas. Our results have significant policy implications.

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    File URL: http://www.buseco.monash.edu.au/eco/research/papers/2008/2308genderahmedmaitra.pdf
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    Paper provided by Monash University, Department of Economics in its series Monash Economics Working Papers with number 23/08.

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    Length: 23 pages
    Date of creation: 02 Aug 2008
    Date of revision:
    Handle: RePEc:mos:moswps:2008-23
    Contact details of provider: Postal: Department of Economics, Monash University, Victoria 3800, Australia
    Phone: +61-3-9905-2493
    Fax: +61-3-9905-5476
    Web page: http://www.buseco.monash.edu.au/eco/
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    1. Appleton, Simon & Hoddinott, John & Krishnan, Pramila, 1999. "The Gender Wage Gap in Three African Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 47(2), pages 289-312, January.
    2. Stepan Jurajda, 2000. "Gender Wage Gap and Segregation in Late Transition," William Davidson Institute Working Papers Series 306, William Davidson Institute at the University of Michigan.
    3. Hoffman, Saul D & Link, Charles R, 1984. "Selectivity Bias in Male Wage Equations: Black-White Comparisons," The Review of Economics and Statistics, MIT Press, vol. 66(2), pages 320-24, May.
    4. Glick, Peter & Sahn, David E, 1997. "Gender and Education Impacts on Employment and Earnings in West Africa: Evidence from Guinea," Economic Development and Cultural Change, University of Chicago Press, vol. 45(4), pages 793-823, July.
    5. Miller, Paul & Rummery, Sarah, 1991. "Male-Female Wage Differentials in Australia: A Reassessment," Australian Economic Papers, Wiley Blackwell, vol. 30(56), pages 50-69, June.
    6. Brainerd, Elizabeth, 1998. "Winners and Losers in Russia's Economic Transition," American Economic Review, American Economic Association, vol. 88(5), pages 1094-1116, December.
    7. Andrew Newell & Barry Reilly, 2000. "The Gender Pay Gap in the Transition from Communism: Some Empirical Evidence," William Davidson Institute Working Papers Series 305, William Davidson Institute at the University of Michigan.
    8. Vera A. Adamchik & Arjun S. Bedi, 2003. "Gender pay differentials during the transition in Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(4), pages 697-726, December.
    9. Jacob Mincer & Solomon Polachek, 1974. "Family Investments in Human Capital: Earnings of Women," NBER Chapters, in: Marriage, Family, Human Capital, and Fertility, pages 76-110 National Bureau of Economic Research, Inc.
    10. Paulo R.A. Loureiro & Francisco Galr√£o Carneiro & Adolfo Sachsida, 2004. "Race and gender discrimination in the labor market: an urban and rural sector analysis for Brazil," Journal of Economic Studies, Emerald Group Publishing, vol. 31(2), pages 129-143, May.
    11. Kidd, Michael P & Viney, Rosalie, 1991. "Sex Discrimination and Non-random Sampling in the Australian Labour Market," Australian Economic Papers, Wiley Blackwell, vol. 30(56), pages 28-49, June.
    12. John Creedy & Alan S. Duncan, 2000. "Wage Functions for Demographic Groups in Australia," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 4(4), pages 296-316, December.
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