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A Distributional Analysis of the Gender Wage Gap in Bangladesh

  • Salma Ahmed
  • Pushkar Maitra

This paper decomposes the gender wage gap along the entire wage distribution into an endowment effect and a discrimination effect, taking into account possible selection into full-time employment. Applying a new decomposition approach to the Bangladesh Labour Force Survey (LFS) data we find that women are paid less than men every where on the wage distribution and the gap is higher at the lower end of the distribution. Discrimination against women is the primary determinant of the wage gap. We also find that the gap has widened over the period 1999 - 2005. Our results intensify the call for better enforcement of gender based affirmative action policies.

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Paper provided by Monash University, Department of Economics in its series Monash Economics Working Papers with number 20-11.

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Length: 35 pages
Date of creation: Sep 2011
Date of revision:
Handle: RePEc:mos:moswps:2011-20
Contact details of provider: Postal: Department of Economics, Monash University, Victoria 3800, Australia
Phone: +61-3-9905-2493
Fax: +61-3-9905-5476
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  1. 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.
  2. Hugo R. Ñopo, 2006. "The Gender Wage Gap in Chile 1992-2003: From a Matching Comparisons Perspective," IDB Publications (Working Papers) 6714, Inter-American Development Bank.
  3. Arulampalam, Wiji & Booth, Alison L. & Bryan, Mark L., 2004. "Is There a Glass Ceiling over Europe? Exploring the Gender Pay Gap across the Wages Distribution," IZA Discussion Papers 1373, Institute for the Study of Labor (IZA).
  4. Picchio, Matteo & Mussida, Chiara, 2010. "Gender Wage Gap: A Semi-Parametric Approach with Sample Selection Correction," IZA Discussion Papers 4783, Institute for the Study of Labor (IZA).
  5. Angel López-Nicolás & Jaume García & Pedro J. Hernández, 2001. "How wide is the gap? An investigation of gender wage differences using quantile regression," Empirical Economics, Springer, vol. 26(1), pages 149-167.
  6. Pham, Hung T & Reilly, Barry, 2007. "The Gender Pay Gap In Vietnam, 1993-2002: A Quantile Regression Approach," MPRA Paper 6475, University Library of Munich, Germany.
  7. Nabanita Datta Gupta & Ronald L. Oaxaca & Nina Smith, 2006. "Swimming upstream, floating downstream: Comparing women's relative wage progress in the United States and Denmark," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 59(2), pages 243-266, January.
  8. repec:rwi:repape:0220 is not listed on IDEAS
  9. Mueller, Richard E., 1998. "Public-private sector wage differentials in Canada: evidence from quantile regressions," Economics Letters, Elsevier, vol. 60(2), pages 229-235, August.
  10. Gregory M. Duncan & Duane E. Leigh, 1980. "Wage determination in the union and non-union sectors: A sample selectivity approach," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 34(1), pages 24-34, October.
  11. Paul W. Miller, 2005. "The Role of Gender among Low-Paid and High-Paid Workers," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 38(4), pages 405-417, December.
  12. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162.
  13. Ganguli, Ina & Terrell, Katherine, 2005. "Wage Ceilings and Floors: The Gender Gap in Ukraine's Transition," IZA Discussion Papers 1776, Institute for the Study of Labor (IZA).
  14. José Mata & José A. F. Machado, 2005. "Counterfactual decomposition of changes in wage distributions using quantile regression," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(4), pages 445-465.
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