Gender segregation and wage differentials in India: the role of educational attainment and occupational choices

Abstract

PurposeThe purpose of this paper is to examine the interrelation between two important dimensions of gender segregation: education and occupation. It further investigates the gender wage gap.Design/methodology/approachThe author uses a three-way additive decomposition of the mutual information index – an index based on the concept of entropy. A non-parametric wage decomposition method that uses matching comparisons is used for measuring the wage gap.FindingsThe results show that the extent of gender segregation in India is higher in urban areas than that in rural areas. Most of the observed segregation in rural labour markets originates from educational outcomes, whereas in urban markets it is due to occupational profile of individuals. The findings of the wage decomposition analysis suggest that education in rural areas also explains a sizeable part of the gender wage differential. Nevertheless, a large share of the wage gap remains unexplained in both rural and urban areas.Originality/valueWhile much research has looked at occupational segregation, less attention has been paid to educational segregation. The paper uses a unique approach to understand the joint effect of occupation and education in explaining gender segregation.

The digitalisation as gender equaliser? The import and export of digitally delivered services in shaping female entrepreneurship in European countries

“…Our findings should also be discussed in the context of the segregation theory, related to the differences in the representation of demographic groups in specific industries, occupations or schools (Agrawal, 2021). Gender segregation in entrepreneurship is related to the fact that female entrepreneurs tend to run smaller businesses and have lower growth ambitions than male ones (Reichborn-Kjennerud and Svare, 2014).…”

“…Even highly equal countries, such as Norway, are very gender segregated, including the domain of entrepreneurship as a form of occupational choice (Reichborn-Kjennerud and Svare, 2014). Segregation is related to the differences in the representation of demographic groups in specific industries, occupations or schools (Agrawal, 2021). The segregation theory assumes the division of labour markets into two parts, the primary and secondary ones, with differences in job characteristics (Mora and Muro, 2015).…”

Untitled

“…However, some gender inequalities in terms of wages and access to certain sectors or positions still exist (Soare et al, 2022;Coron, 2020). Women tend to be underrepresented in primary sectors with higher earnings and better career opportunities, while being overrepresented in secondary sectors with lower pay and fewer perspectives of professional development (Gaweł, Mroczek-Dąbrowska, 2022;Kapsdorferová, Jacková, Švikruhová, 2021;Agrawal, 2021;Damelang, Ebensperger, 2020;Aidis, Weeks, 2016). Women often face a gender-based wage gap which cannot be explained by differences in education and work experience, but rather by existing pre-entry discrimination related to social and cultural contexts, which reduces the accumulation of the human capital of women (Arrazola, de Hevia, 2018).…”

Gaps in the (paid) work hours of male and female heads of households: empirical evidence from Barbados

“…In their analysis of 100 countries, the International Labour Organization (2016) reports that 34.2% of employed women work less than 35 h per week, compared with 23.4% of employed men. Though significant gaps exist, the work-hour gap is an underutilised indicator of sex-based inequality (Landivar, 2015), at least compared to the burgeoning body of work on the gender-wage gaps (see for instance: Agrawal, 2020; Ñopo et al , 2012; Pastore, 2010; Strawinski et al , 2018). The lack of studies on the work-hour gap is surprising, given that discrepancies in paid work hours often reinforce other types of labour market inequalities, such as the gender gap in wages (Meara et al , 2020; Blau and Kahn, 2017; Weeden et al , 2016) and career advancement (Maume, 1999).…”