Title

Competition and the distribution of sector and gender wage gaps: Quantile regression evidence from Egypt

Author's Department

Economics Department

Document Type

Research Article

Publication Title

International Research Journal of Finance and Economics

Publication Date

8-1-2011

Abstract

Gender-based gaps in wages are a persistent problem in both industrialized and developing countries, often exacerbated by privatization strategies that limit the size of state as a 'model' employer. This paper utilizes a unique data set collected prior to the launch of extensive privatization programs in the Egyptian public sector to examine effects of competition in pay setting on wages in public and private establishments. Using earnings functions estimate for male and female wage workers, decomposition techniques show that gender-based pay discrimination is small in the public sector. In contrast, pure rent premia to men is quite high, by international standards in the private sector. These estimates are robust to the inclusion of non-wage estimates in the calculation. Estimates based on quantile regressions show that public sector wage premia exist only at the lower level of the wage distribution, and gender-based pay discrimination is highest in the private sector for the low waged unskilled workers and higher wage groups in technical and managerial positions. These findings highlight the need to reform pay policy in the government and the expected disproportionate impact of privatisation and civil service reform on women. © EuroJournals Publishing, Inc. 2011.

First Page

48

Last Page

69

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