Abstract
<p>Usage of quantile regression is preferred nowadays to examine the gender earnings differentials across the earnings distribution. Based on Household Income Survey of 2009 and 2012, this paper examines the issue in Malaysia. The objective of this study is to evaluate the extent of gender earnings differentials across the earnings distribution in 2009 and 2012, whether the glass ceiling or sticky floor exists in the labour market in Malaysia. Based on the pooled quantile regression analysis, the established results indicate that the earnings gap is increasingly larger towards the bottom of the earnings distribution, a finding that is consistent with the existence of sticky floor in both years. Besides, the gender earnings gap is also accelerating between 75<sup>th</sup> to 90<sup>th</sup> percentiles, reflecting that the glass ceiling also prevails at the top of the earnings distribution in both years. Furthermore, it is noted that the impact of sticky floor is greater than glass ceiling. Nonetheless, further findings denote that the extent of sticky floor had been reduced whilst glass ceiling had increased within the period.</p>
Highlights
On average, women earn 16 per cent less than men in OECD countries
The objective of this study is to evaluate the extent of gender earnings differentials across the earnings distribution in 2009 and 2012, whether the glass ceiling or sticky floor exists in the labour market in Malaysia
It is noted that the impact of sticky floor is greater than glass ceiling
Summary
Women earn 16 per cent less than men in OECD countries. At the higher pay scale, the gap had enlarged with female-top-earners gain 21 per cent less than male. This signifies glass ceiling phenomenon, reflecting that women are at disadvantaged in the decision-making process and lower representation at the senior management level. This is due to the fact that women represent only one for every ten men in the boardroom (OECD, 2012). A report from Wall Street Journal in 1986 described glass ceiling effect as an artificial barrier to the advancement of women into corporate management position (U.S Glass Ceiling Commission, 1995).Perhaps one possible explanation to explain the glass ceiling effect could result from the common institutional restrictions or societal and cultural perceptions as professional women encountering barriers that limit their career progression (Evertson & Nesbitt, 2004)
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