IDEAS home Printed from https://ideas.repec.org/a/mth/raee88/v13y2021i3p45-66.html
   My bibliography  Save this article

Gender Earnings Gap among Urban Youth Adults in Bangladesh: A Comparative Static Analysis

Author

Listed:
  • Muhammad Shahadat Hossain Siddiquee
  • Md. Saiful Islam
  • Md. Raied Arman

Abstract

Despite the importance and recognition of young women's engagement in income-generating activities for socio-economic development, the gender earnings gap still persists across countries, especially in developing countries like Bangladesh. This study presents two datasets from the most recent past to provide fresh evidence for Bangladesh¡¯s urban labor market that has yet to be closely studied. Using individual-level data from the BBS¡¯s (Bangladesh Bureau of Statistics) Labour Force Surveys (LFS) conducted in 2010 and 2015, we have explored the gender earnings gap among the youth (aged 18 to 35 as per Bangladesh¡¯s National Youth Policy 2017) working and earning in the urban labor markets of Bangladesh by applying the three approaches: Mincerian regression, Oaxaca-Blinder decomposition and Quantile regression. The first approach confirms that young women earn significantly less than young men in the urban labor markets after controlling the influences of the covariates. The detailed decomposition results of the second approach indicate that gender differences in hours worked, education, firm characteristics and locations also contribute to the gender earnings gap and the market discrimination against the youth women¡¯s earnings remain the same over the years. The third approach using the lens of distribution perspective shows that earnings gaps persist up to the 25th percentile of distribution in 2010 though it persists across the entire earnings distribution in 2015. The results suggest that engaging more women in income-generating activities, increasing the number of hours worked, improving access to higher education and creating enabling working environment for women might reduce the gender earnings gap.

Suggested Citation

  • Muhammad Shahadat Hossain Siddiquee & Md. Saiful Islam & Md. Raied Arman, 2021. "Gender Earnings Gap among Urban Youth Adults in Bangladesh: A Comparative Static Analysis," Research in Applied Economics, Macrothink Institute, vol. 13(3), pages 45-66, September.
    • Handle: RePEc:mth:raee88:v:13:y:2021:i:3:p:45-66
    as

    Download full text from publisher

    File URL: https://www.macrothink.org/journal/index.php/rae/article/view/18890/14811
    Download Restriction: no
    File URL: https://www.macrothink.org/journal/index.php/rae/article/view/18890
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Björn Nilsson, 2019. "The School-to-Work Transition in Developing Countries," Journal of Development Studies, Taylor & Francis Journals, vol. 55(5), pages 745-764, May.
    2. Shaheen Akter, 2005. "Occupational Segregation, Wage Discrimination, and Impact on Poverty In Rural Bangladesh," Journal of Developing Areas, Tennessee State University, College of Business, vol. 39(1), pages 15-39, September.
    3. Salma Ahmed & Pushkar Maitra, 2015. "A Distributional Analysis of the Gender Wage Gap in Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 51(11), pages 1444-1458, November.
    4. Francine D. Blau & Lawrence M. Kahn, 2006. "The U.S. Gender Pay Gap in the 1990S: Slowing Convergence," ILR Review, Cornell University, ILR School, vol. 60(1), pages 45-66, October.
    5. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    6. Kapsos, Steven., 2008. "The gender wage gap in Bangladesh," ILO Working Papers 994134173402676, International Labour Organization.
    7. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    8. repec:pri:indrel:dsp01gb19f581g is not listed on IDEAS
    9. repec:ilo:ilowps:413417 is not listed on IDEAS
    10. Mustafizur Rahman & Md. Al-Hasan, 2019. "Male–Female Wage Gap and Informal Employment in Bangladesh: A Quantile Regression Approach," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 20(1), pages 106-123, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mustafizur Rahman & Md. Al-Hasan, 2022. "The Reverse Gender Wage Gap in Bangladesh: Demystifying the Counterintuitive," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 65(4), pages 929-950, December.
    2. Danquah, Michael & Iddrisu, Abdul Malik & Boakye, Ernest Owusu & Owusu, Solomon, 2021. "Do gender wage differences within households influence women's empowerment and welfare? Evidence from Ghana," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 916-932.
    3. Avinno Faruk, 2021. "Analysing the glass ceiling and sticky floor effects in Bangladesh: evidence, extent and elements," SN Business & Economics, Springer, vol. 1(9), pages 1-23, September.
    4. Ahmed, Salma & McGillivray, Mark, 2015. "Human Capital, Discrimination, and the Gender Wage Gap in Bangladesh," World Development, Elsevier, vol. 67(C), pages 506-524.
    5. Ahmed, Salma, 2015. "Dynamics and diversity: How are religious minorities faring in the labour Market in Bangladesh?," MPRA Paper 75153, University Library of Munich, Germany, revised 18 Nov 2016.
    6. Yamamoto, Yuki & Matsumoto, Ken’ichi & Kawata, Keisuke & Kaneko, Shinji, 2019. "Gender-based differences in employment opportunities and wage distribution in Nepal," Journal of Asian Economics, Elsevier, vol. 64(C), pages 1-1.
    7. Anne Daly & Nafisa Anjum, 2019. "The gender wage gap in Bangladesh: an application of Olsen and Walby simulation method," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 22(1), pages 29-51.
    8. Grund, Christian, 2015. "Gender pay gaps among highly educated professionals — Compensation components do matter," Labour Economics, Elsevier, vol. 34(C), pages 118-126.
    9. Intan Nurpratiwi & Syamsurijal Abdul Kadir & Yunisvita Yunisvita, 2019. "Factors that Influence Wages Differences in Formal Sector on Male and Female Workers in Palembang City," Business & Management Compass, University of Economics Varna, issue 4, pages 327-343.
    10. Brieland, Stephanie & Töpfer, Marina, 2020. "The gender pay gap revisited: Does machine learning offer new insights?," Discussion Papers 111, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    11. Carolina Castagnetti & Luisa Rosti & Marina Toepfer, 2017. "Overeducation and the Gender Pay Gap in Italy. A Double Selectivity Approach," DEM Working Papers Series 144, University of Pavia, Department of Economics and Management.
    12. Sonja C. Kassenboehmer & Mathias G. Sinning, 2014. "Distributional Changes in the Gender Wage Gap," ILR Review, Cornell University, ILR School, vol. 67(2), pages 335-361, April.
    13. Bonaccolto-Töpfer, Marina & Castagnetti, Carolina & Rosti, Luisa, 2023. "Changes in the gender pay gap over time: the case of West Germany," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 57, pages 1-11.
    14. Rahman, Mustafizur & Al-Hasan, Md., 2018. "Male-Female wage gap and informal employment in Bangladesh: A quantile regression approach," MPRA Paper 90131, University Library of Munich, Germany.
    15. Caliendo, Marco & Lee, Wang-Sheng & Mahlstedt, Robert, 2017. "The gender wage gap and the role of reservation wages: New evidence for unemployed workers," Journal of Economic Behavior & Organization, Elsevier, vol. 136(C), pages 161-173.
    16. Marisetty, Vijaya Bhaskar & Prasad, Salu, 2022. "On the side effects of mandatory gender diversity laws in corporate boards," Pacific-Basin Finance Journal, Elsevier, vol. 73(C).
    17. Peter T. Calcagno & Meg M. Montgomery, 2021. "The gender wage gap: an analysis of US congressional staff members," Public Choice, Springer, vol. 188(1), pages 183-201, July.
    18. Chiara Mussida, 2015. "L?impatto dell?istruzione sui salari per genere in Italia / Appendice Statistica," ECONOMIA E SOCIET? REGIONALE, FrancoAngeli Editore, vol. 2015(2), pages 94-113.
    19. Mustafizur Rahman & Md. Al-Hasan, 2019. "Male–Female Wage Gap and Informal Employment in Bangladesh: A Quantile Regression Approach," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 20(1), pages 106-123, March.
    20. Christophe J Nordman & Leopold R Sarr & Smriti Sharma, 2019. "Skills, personality traits, and gender wage gaps: evidence from Bangladesh," Oxford Economic Papers, Oxford University Press, vol. 71(3), pages 687-708.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mth:raee88:v:13:y:2021:i:3:p:45-66. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Technical Support Office The email address of this maintainer does not seem to be valid anymore. Please ask Technical Support Office to update the entry or send us the correct address (email available below). General contact details of provider: http://www.macrothink.org/journal/index.php/rae .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.