Gender wage differentials in the Philippine labor market
Date
2009-01
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Abstract
The study Women in the Labor Market: Philippines, conducted by Alonzo, Horton, and Nayar (1996) evaluated and described what accounts to the wage gender differential between men and women using the 1988 data. This paper updates the findings of Alonzo, Horton and Nayar on gender wage differential and found out that there still exists wage discrimination against women in the Philippine Labor Market.
Using the Oaxaca decomposition method and the Heckman test for sample selectivity, the proponent of this study investigated on (1) the differences in the components of the male and female wage structures, and (2) the extent of their differences or discrimination. In defining the wage structures for men and women, age, marital status, educational attainment, type of occupation and region were used as independent variables. Using hourly wage rate as the dependent variable, it was found out that there still exists gender wage discrimination in the Philippine labor market against the female workers. Without discrimination, female workers should have been earning the same wage with men, which is 1.9 times higher than the formers' actual wages. Therefore, there is no progress in diminishing the gender wage gap.
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Keywords
Gender wage differentials, Wage differentials, Philippine labor market, Labor market, Wage