Determinants of Earnings and Gender Earnings Gaps among Highly Educated Workers within Major Cities in Asian Countries*

Takeuchi, Mamiko

doi:10.1111/asej.12242

Cited by 3 publications

(1 citation statement)

References 38 publications

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“…There has been renewed interest in the subject of gender wage gap over the past two decades both within and across countries and African countries are not left out (Ntuli and Kwenda, 2020). Whilst labour unions across the globe have continued to push for higher wages, the issue of gender differences in earnings in the same country, occupation, industry and with similar characteristics (Metcalf, 2009; Takeuchi, 2021) has continued to be of great interest amongst researchers, gender activists and international organisations. The results of the analysis of gender disparity in labour markets in Africa are dominated by sharp contrasts, and it has remained a serious challenge in many countries (ILO, 2019).…”

Section: Introductionmentioning

confidence: 99%

Analysis of gender wage gap and the Nigerian labour market: a new empirical evidence

Orji,

Nwosu

2023

IJM

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PurposeThis study investigated the gender wage gap in Nigeria by analysing two waves of household surveys (in 2003–2004 and 2018–2019) in order to understand the dynamics or polarisation of the labour market in Nigeria in terms of the gender wage gap over time.Design/methodology/approachThe study applied an extension of Oaxaca–Blinder decomposition that relies on the re-centred influence function (RIF) regressions to analyse the gender wage gap at all points along the wage distribution.FindingsThe results unambiguously show that there is a significant gender wage gap in Nigeria at all points along the wage distribution, such that for the two surveys used and after nearly two decades, men still earn more than women. That is, the log wage difference between males and females is statistically significant at all points between the 10th and the 90th quantiles. In 2003–2004 period, the authors found that most of the wage difference was significantly accounted for by the wage structure effect, whilst the composition effect was negative and only significant at the bottom of the wage distribution. Since the 2018–2019 period, the authors found that there has been a visible change such that most of the gender wage gap is now accounted for by the composition effect at all points along the wage distribution. Another interesting finding is that there has been a general decline in the gender wage gap along the entire wage distribution, such that inequality was higher in 2003–2004 than in 2018–2019. This decline is bigger at the top than at the bottom of the wage distribution. The authors also found that, contrary to some of the studies on the wage gap, the raw gaps for the two surveys appear to show inverted U-shape, but the gap has fallen quickly since the 2018–2019 period. Thus, the authors found strong evidence of a “sticky floor” compared to a “glass ceiling” effect in both periods, and this becomes more pronounced over time. In terms of the contributions of individual covariates on gender pay gap in Nigeria, the authors found that urban residence, unionisation, education and occupation variables exhibit major influence. However, the effects of covariates on the composition and wage structure components of the wage gap have changed over time.Practical implicationsThe major policy implication of these findings is that to address the gender wage gap in Nigeria, policy should focus more on how labour is rewarded and improving human capital for women.Originality/valueThis study is a novel paper in Nigeria that has investigated the gender wage gap in Nigeria by extending the focus of literature in three ways. First, the authors applied an extension of Oaxaca–Blinder decomposition that relies on the RIF regressions to analyse the gender wage gap at all points along the wage distribution. Second, the authors used sample selection bias to account for the non-randomness of participation in wage employment. And third, the authors applied similar analysis to two waves of household surveys (in 2003/2004 and 2018/2019) in order to understand the dynamics or polarisation of the labour market in Nigeria in terms of the gender wage gap over time.

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Section: Introductionmentioning

confidence: 99%