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Labor Economics project Essay

Gender wage discrimination usually occurs when equally productive male and female workers are paid differently (Saber and Ezra). In most of the societies women are also concentrated on low eying Job where they work for longer hours and still their work is undervalued and unrecognized. Therefore it is utmost need to address this gender inequality issue so that the country could progress both economically and socially.

OBJECTIVE The objective of this article by Gullah Yak’s, Naira Shari Chuddar and SIAM Faze was to analyze the determinants of gender wage discrimination in Pakistan using descriptive and regression analysis based on the cross-sectional data of Pakistan labor force survey. DATA The cross sectional data on the variables was collected from Labor Force Survey 2003-04) conducted by Federal Bureau of Statistics. This survey covered 18,912 households and more than 100,000 individuals of all urban and rural areas of four provinces of Pakistan.

The explanation of dummy variables is as follows: TOUCHED is one

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if worker received technical education, zero otherwise, MAR is one

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if individual is married, zero otherwise, WIDE is one

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if individual is widowed, zero otherwise, DIVA is one

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if individual is divorced, zero otherwise. Unmarried individuals are the reference category.

PROOF is one

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if individual is a professional, zero otherwise, DAMN is one

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if individual is an administrator/ manager, zero otherwise, CLERK is one

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if individual is clerk or labor Economics project By samurai ere otherwise, SERVE is one

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if individual is a services worker, zero otherwise, AGRIC is one

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if individual is an agricultural worker, zero otherwise. Production workers are the reference category.

ALA is one

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if individual is lives in Lahore, zero otherwise, FAST is one

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if individual lives in Fusillades, zero otherwise, RAW is one

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if individual lives in Rawlins, zero otherwise, MULL is one

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if individual lives in Manual, zero otherwise, GUY is one

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if individual lives in Granular, zero otherwise, ASIA is one

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if individual lives in Shallot, zero otherwise, BAH is one

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if individual lives in Ballpark, zero otherwise. Saratoga is used as reference category. ESTIMATION Ordinary least square (LOS) method of regression analysis was used for empirical explanation.

RESULTS Descriptive analysis The results of descriptive analysis showed that almost 34 % males were employed in production sector while 37 % females were confined to lower level white collared Job such as clerks and women were under represented in professional, administration, sales and agriculture sector. Attainment of technical education among females was slightly better as compared to that among males. More married male workers were employed than married female workers where as percentage of unmarried ,widowed and divorced female workers was greater than that of their respected male counter- parts.

The results showed that majority of the workers; both male and female, were from Lahore and the income earned by the females on average was 21 % less than that earned by the males. The results were in accordance with segmented labor market theorists who argued that the differential in male and female wages emerged because of the division of males in high paying Jobs and females in low paying Jobs. REGRESSION ANALYSIS Two wage equation I. . Full scale wage equation and personal characteristic wage equation were used. The results of full scale wage equation showed that the coefficient of human capital variable was significant for males.

The value of the coefficient of experience was greater for males as compared to females where as the experience-square term was negative and significant for both males and females which confirmed the of concavity of age earning profile. The result also depicted that highly educated males were less experienced as they spend more years in schooling significant for males that led to increase in their wages. Earnings of married males were more as compared to unmarried males and both male and female workers were more confined in professional groups.

Female workers from Ballpark earned more wages and only those female workers get into the labor force that were talented and motivated whereas male workers from Lahore and Rawlins earn more as compared to workers from other cities. Personal characteristic wage equation showed more or less the same pattern except the rate of return to schooling was same for both males and females and marital status was not found statistically significant for both male and female workers. CRITICAL ANALYSIS Discrimination against women is very much prevalent in almost every society from the time immemorial.

This discrimination can take many forms such as denying women an access to education, training, nutritional diet that is enjoyed by her male siblings, social, political and economic rights etc. Similarly discrimination may also manifest itself into social disapproval of female participation in labor force. Such a bias affects the capabilities and attributes of women in a negative way. The differential in the earnings of male and female workers arises not only due to criminality attitude against women in work place but also due to their low level of education, higher degree of household responsibilities and impartial attitude of parents.

Many studies have been conducted by researcher regarding the gender wage discrimination in Pakistan among which Ashram (2001), Saber and Ezra, Baas et. Al (2010), Hyde and Barry (2005) and Aimed et. Al (1991) are worth mentioning. The result of these studies also suggested that women are not different in productivity than men. Therefore in order to ensure the removal of gender wage differential constructive steps should be taken by the government. Equal opportunities to work irrespective of their gender should be there and female worker should not only be confined to traditional Jobs.

Provision of better infrastructure, education and training to all should be ensured. Removal of any social and regulatory obstacle in the way of enhancing potentials and skills of individuals. Creation of an effective financial service mechanism that can provide female with easy credit facilities should be there. Such measures will help to remove bias of any sort against women and will enable them to contribute towards the economic and social development with their utmost might.

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