Female and Male Wage Differentials in Addis Ababa a Case Study in Four Factories
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Date
1998-06
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A.A.U
Abstract
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.
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Keywords
Female and Male, Wage Differentials