The Wage Gap between Men and Women in Botswana's Formal Labour Market

Abstract

This study looks at the wage gap between men and women in Botswana's formal sector labour market. The wage gap is decomposed using Oaxaca's decomposition methodology. This method breaks down earnings differences into two parts: one part is due to differences in characteristics between men and women, while the other part is due to differences in rewards to those characteristics in the labour market. The latter has often been interpreted as a measure of the extent of the discrimination against women. The results of the decomposition exercise shows that there is relatively less discrimination in the public sector, while in the private sector discrimination against women is a major factor explaining the differences in their earnings.