Socioeconomic Determinants of Wage Differential at Workplace: A Case Study of Pakistan

Abstract

This study examines three socioeconomic determinants of wage differentials at work among males and females, males only and females only. Secondary data from the Pakistan Living Standards Measurement Survey (PSLM) 2018-19 and binary logistic regression techniques were used to assess the wage differential in Pakistan's workplace. Female respondents are more likely to suffer from low wages at work than male respondents. As a result, the wage differential exists according to gender. High-educated respondents are less likely to fall into lower salaries than those with primary education. Based on the study results, a wage differential at work is more likely to occur for unmarried respondents than for married respondents. There is a wage differential between respondents in managerial-related occupations and those in other fields. Even though all determinants of wage differential have their impact, personal attributes like education play a significant role in determining wage differentials at the workplace. Men who are married earn lower wages at work than unmarried men, according to the results. Wage differentials are affected by marital status. The wage differential persists as male education increases, with higher-educated men earning lower wages. Men who do not work in managerial occupations are more likely to face wage differentials than managers. It is less likely that rural males will face wage differentials. In addition, male respondents in Punjab are less likely to fall into lower income levels at work than respondents in other regions. This suggests that wage differentials are affected by various factors, including region, marital status, and education. However, more research is needed to understand the exact causes of wage differentials between men and women. It is also essential to recognize that wage differentials are not always based on gender alone. Other factors like race or ethnicity may also affect wage disparities.