Abstract
In this paper it has been tried to estimate the monthly earnings differentials between male and female labor force in Pakistan’s labor market using the data of the most recent Pakistan Social and Living Standard Measurement (PSLM) survey 2004-05. The study decomposed the monthly earnings differentials between male and female labor force following the Oaxaca (1973) and Cotton (1988) methodology, while for the estimation of the rates of return to human capital and other non-human capital variables; the study used the Mincerian (1974) model. The decomposition of earnings differentials between male and female labor force indicate that there is a huge discrimination against female workers in the labor market of Pakistan. The PSLM (2004-05) data supports the hypothesis that male workers enjoy an economic advantage over the female workers having the same characteristics in the labor market of Pakistan. Eliminating this discrimination against the female worker with a more focus and more investment in female’s education and schooling is needed for reducing the earnings differentials between them.
Dr. Mohammad Farooq,, Professor Dato’. (2009) Gender Earnings Inequality and Discrimination in the Pakistani Labor Market, The Dialogue, Volume 4, Issue 3.
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