Estimation of Gender Wage Differentials using Oaxaca Decomposition Technique

Type Journal Article - Topics in Middle Eastern and North African Economies
Title Estimation of Gender Wage Differentials using Oaxaca Decomposition Technique
Author(s)
Volume 16
Issue 1
Publication (Day/Month/Year) 2014
Page numbers 17-42
URL http://ecommons.luc.edu/cgi/viewcontent.cgi?article=1187&context=meea
Abstract
This paper focuses on estimating wage differences between males and females in Egypt to
understand the determinants of the gender wage gap and control of this variation. The
methodology of this paper is based on studying and analyzing the topic of wage differentials
between males and females by using the Oaxaca decomposition technique. The data used in the
analysis is obtained from the Egypt Labor Market Panel Survey 2006 (ELMPS 2006), which was
presented by Central Agency for Public Mobilization and Statistics (CAPMAS) in cooperation
with Economic Research Forum (ERF). The findings of this paper help deepen the understanding
of the wage gap between males and females in Egypt by determining differences in wages due to
real variations in characteristics between both genders, for example, education and experience
and differences due to discrimination against women in addition to determining differences due to
selectivity bias. It is estimated that, the wage gap between males and females is 25% and the
results ascertain that the overall gap is attributed to discrimination against women.

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