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Decomposition of gender wage differentials in Iran: an empirical study based on household survey data

Author

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  • Seyed Moaven Razavi
  • Nader Habibi

    (Brandeis University, USA)

Abstract

In this study we investigate the magnitude of wage discrimination against women in the Iranian labor market by decomposing the male-female wage differential into differences in human capital and wage discrimination. We use the Oaxaca decomposition model in our econometric investigation. In our empirical analysis we use Iranís Household Expenditure and Household Survey (HEIS) data for years 2002 and 2005. Our descriptive analysis suggested a generally low participation of women in labor market in both years. The Oaxaca decomposition model results suggest that in both, public and private, sectors a significant share of wage differentials is attributable to discrimination. Furthermore the gender difference in the quality of labor force (human capital) is estimated to be approximately equal and in some cases even superior for women. Oaxaca decomposition for separate skill categories suggests that wage discrimination for specialists and scientists category is relatively smaller than for less skilled employees.

Suggested Citation

  • Seyed Moaven Razavi & Nader Habibi, 2014. "Decomposition of gender wage differentials in Iran: an empirical study based on household survey data," Journal of Developing Areas, Tennessee State University, College of Business, vol. 48(2), pages 185-204, April-Jun.
    • Handle: RePEc:jda:journl:vol.48:year:2014:issue2:pp185-204
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    Cited by:

    1. Abdallah Dah & Ali Fakih, 2016. "Decomposing Gender Wage Differentials Using Quantile Regression: Evidence from the Lebanese Banking Sector," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 22(2), pages 171-185, May.

    More about this item

    Keywords

    Wage Discrimination; Wage; Iran; Labor; Oaxaca Decomposition; and Gender Discrimination;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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