An Analysis of the Gender Earning Differentials in Pakistan

Liaqat Ali,Naveed Akhtar

doi:10.19026/rjaset.7.599

Abstract

The objective of this study is to examine the determinants of income and income gap for male and female workers in Pakistan. We have used province, literacy, education, occupation, industry, status of job, age, marital status and region as explanatory variables to estimate earning functions separately for males and females by applying the OLS method using HIES 2010-11 data. The earnings gap between males and females has also been analyzed by using the Blinder-Oaxaca decomposition method. Results shows that return to education rises with level of education for workers of both sexes however, they are significantly higher for female workers as compared to male workers. Both males and females working as senior professionals, managers and technicians have been emerged as the highest earners. Male paid employees earn less and female paid employees earn more than their employers & self employed counter parts. Married male workers earn more and married female workers earn less than the singles. We find individual characteristics like education, occupation, job status and marital status as the major determinants of income gap between male and female workers in Pakistan.

Highlights

Pakistan is a developing country having total population of 177.10 million in 2011 out of which 51.06% were male and 48.94% were female (Economic Survey of Pakistan, 2011-12)
The differences between earnings of male and female workers are common in both developed and developing countries like Pakistan. These differences are found in various socio-economic aspects such as labor force participation rate, employment and unemployment, enrolment and literacy rates, life expectancy and most importantly income of the male and female workers
The gender income gap has been a common area of research both in developed as well as Pakistan like developing countries

Summary

Introduction

Pakistan is a developing country having total population of 177.10 million in 2011 out of which 51.06% were male and 48.94% were female (Economic Survey of Pakistan, 2011-12). The differences between earnings of male and female workers are common in both developed and developing countries like Pakistan. These differences are found in various socio-economic aspects such as labor force participation rate, employment and unemployment, enrolment and literacy rates, life expectancy and most importantly income of the male and female workers. The total civilian labor force in Pakistan was 45.69% of the total population comprising 35.08% of male and 10.60% of female. The unemployment rate for male and female increased from 1.87 and 1.06% in 2008-09 to 2.22 and 1.18% in 2010-11, respectively (Labor Force Survey, 2011-12)

Objectives

Methods

Findings

Conclusion