Trends in Gender Wage discrimination in Pakistan at Quantile level:

Empirical Evidence from Pakistan using LFS 2007-08 & 2017-18

Group members:
Ali Haider Yaseen : 2020-02-0327
Syed Mohib Kazmi : 2020-02-0014

  Gender wage discrimination occurs when equally productive male and female workers are paid
differently. Previous studies on Gender pay gap in Pakistan had analysed by gender pay
gap comparing mean male-female wages. In Our research project, we aim to examine the gender
pay gap at different quantiles along the wage distribution.

The Data sets we used were LFS 2007-08 & 2017-18and we will restrict our sample to wage earners
and salaried persons only.  The result can be used to see the impact of economic development on
gender pay gap and labour market.

We created dummy variables of labour force characteristics (age,employed,education, job type, wage
etc) and analysed at gender level and calculated employment and wage ratios at provisional and
regional level.

To analyse the gender pay gap, we used more than one method to verify the sensitivity of the
gender wage differential with respect to the choice of technique. The estimates include :
1)comparison of the mean male-female wage gap,
2) the Oxaca-Blinder decomposition of the male-female wage differential,
calculate endowment effect,wage discrimination at different quantile(Q10 Q25 Q50 Q75 Q90
etc)
3) and analyze the gender wage gap along the wage distribution using quantile regression.

Labor force characteristics by Gender:

2017-18 2007-08

Male Female Male Female

Age 34.97 33.1 34.68 31.74

Employed 15558 2188 14198 1632

Primary .128 0.041 .124 .043

Middle .127 .034 .119 .035

Matric .188 .121 .212 .168

Inter .114 .123 .123 .155

Grad .130 .185 .144 .206

Post_grad .0815 .258 .0694 .143

Public .0175 .005 .0164 .005

Urban .685 .684 .731 .683

White_collar .187 .563 .969 .915

Blue_collar .813 .436 .031 .085

Wage 22867.6 19670.2 8441.53 6288.46

Province Employment ratio Wage ratio

2007-08 2017-18 2007-08 2017-18

Punjab 0.163 0.694

Sind 0.072 0.780

NWFP 0.119 0.901

Balochistan 0.062 0.994

*Province variable not available in the 2017-18 data provided. We will make it as we get it.

1)comparison of the mean male-female wage gap at quantile level,

Table 3:

2007-08:

Mean: (coefficient then standard error)

Q10:

Q25:

Q50:
Q75:

Q90:

2017-18:

Mean: (coefficient then standard error)

Q10:

Q25:

Q50:

Q75:

Q90:

2) the Oxaca-Blinder decomposition of the male-female wage

differential, endowment effect,wage discrimination 
Blinder oaxaca 2007-08:
Detail:
2017-18:
3) Quantile Regrssion

Quantile Regression 2007-08:

3A) Pooled Regression(both sexes):

10th quantile regression:

25th quantile regression:

50th quantile regression:

75th quantile regression:

90th quantile regression:

2017-18:

10th quantile:

25th quantile:
50th quantile:

75th quantile:
90th quantile:

3B) Female and Male regression 2007-08:

If female:

10th quantile:
25th quantile:

50th quantile:
75th quantile:

90th quantile:
If male:

10th quantile:

25th quantile:
50th quantile:

75th quantile:

90th quantile:
Female and Male quantile Regression 2017 18:

Female:

Q10:

Q25:
Q50:

Q75:
Q90:

Male:

Q10:
Q25:

Q50:
Q75:

Q90: