Human Resource Economics

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Female and Male Wage Differentials in Addis Ababa a Case Study in Four Factories
(A.A.U, 1998-06) Haile, Tsehay; Aredo, Dejene (Dr)
In this study we used two methods to. estimate the extent of labor our market discrimination. The sample is taken from four factories in Addis Ababa. The first method is descriptive statistics, which estimate whether there is wage difference between female and male. The findings of the study indicate that there is wage difference, which is mainly attributable to difference in relevant variables and to a lesser extent due to sex difference. Consistent with the above result the second method, i.e., Oaxaca (1973) and Oaxaca- Ransom (1994) also indicated the existence of wage difference. This method decomposes log of monthly gross wage differentials Into labor market discrimination, the cause of which is difference in sex, and difference in relevant ones. In method of Oaxaca (1973) using female wage as a base, labor market discrimination is found to be higher . while using male wage as a base the difference between relevant variables caused larger parts of wage differentials. In method of Oaxaca -Ransom (1994) the difference between relevant variables caused larger parts of wage differentials. Both descriptive and wage decomposition indicate the existence of wage difference. The majority part of this difference is explained in both methods by relevant variable difference.