Breaking the Rupee Glass Ceiling: Understanding the Gender Wage Gap in Pakistan’s Workforce

Proceedings of The 6th Global Conference on Women’s Studies

Year: 2024

DOI:

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Breaking the Rupee Glass Ceiling: Understanding the Gender Wage Gap in Pakistan’s Workforce

Jihan Adnan Khan

 

ABSTRACT:

This paper investigates the gender wage gap across formal, informal, and agricultural sectors in Pakistan, offering a nuanced examination of the socio-economic determinants influencing wage disparities. Leveraging the 2020-2021 Labor Force Survey, this study uses Ordinary Least Squares (OLS) regression and the Blinder-Oaxaca Decomposition method to parse out the wage gap attributable to observable characteristics and that stemming from potential discrimination. The findings reveal pronounced gender wage disparities within each sector, with the gap being widest in the agricultural sector. The results show that factors such as location, technical knowledge, and marital status distinctly affect men’s and women’s wages. The study sheds light on significant unexplained wage disparities, suggesting the presence of systemic discrimination. Policy recommendations focus on targeted, culturally informed strategies aimed at fostering women’s economic empowerment and addressing the socio-economic constraints within the Pakistani labor market.

keywords: Gender; Development; Public Policy; Global South; Economics