Gender Earning Differential in the Ethiopian Public Sector.
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Date
2008-06
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A.A.U
Abstract
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.
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Keywords
Gender Earning, Differential in the Ethiopian