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Male–Female Wage Gap and Informal Employment in Bangladesh: A Quantile Regression Approach

Mustafizur Rahman and Md. Al-Hasan ()

South Asia Economic Journal, 2019, vol. 20, issue 1, 106-123

Abstract: This article undertakes an examination of Bangladesh’s latest available Quarterly Labour Force Survey 2015–2016 data to draw in-depth insights on gender wage gap and wage discrimination in Bangladesh labour market. The mean wage decomposition shows that on average a woman in Bangladesh earns 12.2 per cent lower wage than a man, and about half of the wage gap can be explained by labour market discrimination against women. Quantile counterfactual decomposition shows that women are subject to higher wage penalty at the lower deciles of the wage distribution with the wage gap varying between 8.3 per cent and 19.4 per cent at different deciles. We have found that at lower deciles, a significant part of the gender wage gap is on account of the relatively larger presence of informal employment. Conditional quantile estimates further reveal that formally employed female workers earn higher wage than their male counterparts at the first decile but suffer from wage penalty at the top deciles. JEL: C21, J31, J46, J70

Keywords: Gender wage gap; Oaxaca–Blinder decomposition; quantile decomposition; informal employment; quantile regression (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1177/1391561418824477

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