Gender Earning Differential in the Ethiopian Public Sector.

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This paper presents the analysis of the determinants of gender wage differential in the Ethiopian Public Sector using the 2006 Urban Employment and Unemployment Survey. The Oaxaca (1973) and Neumark (1988) techniques are used in decomposing the gender pay gap based on two specifications of wage equation. One of the specifications constitutes selectivity correction terms while the other does not. Results from both specifications show that 52 to 61 percent of the gender wage gap is explained by observable characteristics whereas the remaining proportion is the unexplained part of the differential. Differences in human capital endowment and occupation contribute nearly the same amount to the explained pal1 of the earnings differential. The result of the analysis fails to support the hypothesis of no gender wage discrimination in the public sector. Based on this result, the study implied the need for allocating a substantial amount of resources on girl s' education and the strengthening of the legal and institutional framework that penalizes wage discrimination against women.



Gender Earning, Differential in the Ethiopian