Re-examining gender earning differentials in Malaysian manufacturing

Cheong, Jia Qi and Suresh Narayanan and Jacqueline Lisa Fernandez (2022) Re-examining gender earning differentials in Malaysian manufacturing. Asian Economic Papers, 21. pp. 64-91. ISSN 1535-3516 (P-ISSN) , 1536-0083 (E-ISSN)

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Abstract

The manufacturing sector is a major avenue for female employment in the urban labor market in Malaysia. Only two studies, both published more than two decades ago, have examined gender earning differentials in this sector. Since then, the percentage of women being educated has increased, along with their participation rate, and several laws protecting their rights have also been passed, making it timely to re-examine the earnings gap. We do this by drawing on more recent data from a larger representative survey of manufacturing employees. The Blinder-Oaxaca technique, utilized in the previous two studies, was used to estimate the existing earnings gap and to decompose it to differences attributable to endowments, coefficients (traditionally viewed as subsuming discrimination), and the interaction between the two. We found a smaller gap than previously reported, with better female endowments helping to narrow the gap, and unexplained differences in coefficients being responsible for the remaining gap. The interaction effect was not statistically significant. Contrary to the earlier studies, the differential treatment of women in the manufacturing sector, rather than endowment differences, is hampering the equalization of earnings. This calls for newer approaches to closing the earnings gap.

Item Type:	Article
Keyword:	Earnings gap , Urban labor market , Market in Malaysia
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28-9999 Industries. Land use. Labor > HD4801-8943 Labor. Work. Working class > HD6050-6305 Classes of labor Including women, children, students, middle-aged and older persons, minorities
Department:	FACULTY > Faculty of Business, Economics and Accounting
Depositing User:	SAFRUDIN BIN DARUN -
Date Deposited:	02 Aug 2022 10:29
Last Modified:	02 Aug 2022 10:29
URI:	https://eprints.ums.edu.my/id/eprint/33596

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