gender based wage gap and its microeconomic implications

8/17/2019 Gender Based Wage Gap and Its Microeconomic Implications

1/17

GENDER BASED WAGE GAP AND ITS

MICROECONOMIC IMPLICATIONS

NURFATIHAH BINTI MUSTAFHA KAMARUDDIN EEE130078 SYAFIKAH BINTI KUNHAMOO EEE130087 NAJEEBA MOHAMMED ALTAF EEE130704

NUR SYAMILLAH BINTI MD YUSOP EEE110096


2/17

CONTENTS

1. abstract

. !"tr#$%ct!#"&. '!t(rat%r( r()!(*

+. ,!"$!"-s a"$ $!sc%ss!#"

. M(t/#$#'#-0. POLICY IMPLICATIONS AND C#"c'%s!#"

2. REFERENCES


3/17

ABSTRACT

T/!s st%$0 (3a4!"(s t/( %"5a!$ 'ab#r *a-(s6 t/at #,t(" -# %""#t!c($6 a"$ !ts

4!cr#(c#"#4!c !45'!cat!#"s r(-ar$!"- t/( -("$(r !"(7%a'!t0 5r()a'("t t/r#%-/#%t t/( (c#"#40

!ts(', a"$ t/%s6 t/!s st%$0 a!4s t# s/($ '!-/t #" t/( %"!$("t!,!($ c#"s(7%("c(s t# t/( "at!#"a'

(c#"#40 $%( -("$(r b!as !" t/( *#r8,#rc(. D(s5!t( t/( -("(ra' 4!sc#"c(5t!#" b(!"- t/at ,(4a'(

5art!c!5at!#" !" t/( 'ab#%r 4ar8(t /as c#4( a '#"- *a06 t/(r( !s st!'' a" %"$(r r(5r(s("tat!#" #,

t/( str%--'( t/at *#4(" 4a8( */(" tra"s!t!#"!"- ,r#4 ($%cat!#" t# t/( *#r8,#rc(. T/( 4#st

s()(r( ,act#rs #, */!c/ ar( t/( s#c!(ta' "#r4s t/at ca%s( t/( -("$(r s(-r(-at!#" t# #cc%r a"$ !"

t%r" 5(r5(t%at(s t/( !$(#'#-0 t/at ()(" a" !"cr(as( !" ($%cat!#"a' (7%a'!t0 ca""#t -%ara"t((

(7%a'!t0 #, #55#rt%"!t!(s !" t/( *#r85'ac(. A"#t/(r 8(0 ,act#r !$("t!,!($ !s t/( %"(7%a'

$!str!b%t!#" #, %"5a!$ 'ab#%r a4#"- t/( -("$(rs. W/!'( !t !s r(c#-"!9($ t# b( a *#4a":s

5r(r#-at!)( t# c#44!t t# b#t/ %"5a!$ s(r)!c(s !" t/( /#%s(/#'$ a"$ t/( *#r85'ac(6 !t !s (3act'0

t/!s t/at r(5r(s("ts a" !",r!"-(4("t #" *#4(":s r!-/ts a"$ t/(!r ;#%r"(0 t# (c#"#4!c a"$ s#c!a'

(45#*(r4("t. T/( $ata a"$ ,!-%r(s /a)( b((" r(tr!()($ ,r#4 t/( M!"!str0 #, W#4("6 Fa4!'0

a"$ D()('#54("t #, Ma'a0s!a r(5#rt a"$ I"t(r"at!#"a' Lab#r Or-a"!9at!#"


4/17

INTRODUCTION

D!scr!4!"at!#" !s t/( r(as#" *#4(" !" Ma'a0s!a st!'' s%,,(r %"$(r t/( -("$(r 5a0 -a5.

T/!s !s */(r( t/( %"5a!$ 'ab#r *a-( t#*ar$s *#4a" t/at #,t(" -# %""#t!c($6 a"$ !ts4!cr#(c#"#4!c !45'!cat!#" r(-ar$!"- t/( -("$(r !"(7%a'!t0 5r()a'("t t/r#%-/#%t t/( (c#"#40

!ts(',. R(-ar$!"- t# t/( M!"c(r ar-%(s t/at *a-( -a5 ar( /!-/'0 c'ar!,!($ b0 c#"trasts !" /%4a"ca5!ta' r!-/t a4#"- t/( $!,,(r("t 5art!(s. H!s ar-%4("t $(5("$s #" /%4a" ca5!ta' t/(#r0 t/atstr(ss #" t/( ca5ac!t0 #, /%4a" ca5!ta' t# cr(at( !"c#4(. As B(c8(r ca''($ att("t!#" t# t/at t/(r(

*as a 5#s!t!)( r('at!#"s/!5 b(t*((" /%4a" ca5!ta' a"$ 5r#$%ct!)!t0. As *a-(s ar( 5a!$ acc#r$!"-

t# 4ar-!"a' 5r#$%ct!)!t06 $!,,(r("c(s !" t/( 5r#$%ct!)!t06 t/(r(,#r(6 *!'' '(a$ t# *a-( $!,,(r("t!a's.

T/( 4ar-!"a' 5r#$%ct!)!t0 !s 4#r( a55r#5r!at( !" c'ar!,0!"- *a-( -a5 b0 -("$(r. T/!s

t/(#r0 c'ar!,!(s -("$(r *a-( -a5 $()('#5 !" '!-/t #, t/( ,act t/at 'a$!(s ar( s((" t# /a)( '#*(r

5r#$%ct!)!t0 b(ca%s( #, '#*(r /%4a" ca5!ta' ,%',!''4("t. T/(0 ar( '!8(*!s( !"c'%$($ !" '(ss

$!,,!c%'t #cc%5at!#" a"$ c#"-(st!#" !" c(rta!" ;#bs. A"#t/(r t/(#r0 t/at ca" c'ar!,0 -("$(r *a-(-a5 !s t/( $%a' 'ab#%r 4ar8(t. As !"$!cat($ b0 t/!s t/(#r06 'ab#%r 4ar8(t ca" b( s(5arat($ !"t#

t*# c'ass(s6 !.(. t/( 5r!4ar0 'ab#%r 4ar8(t6 */!c/ !s 4#r( #r-a"!9($ a"$ c#45#s($ a"$ t/(s(c#"$ar0 'ab#%r 4ar8(t */!c/ !s 4#r( s'#550. T/( 'ar-(r 5art #, *#4(" ar( !" t/( s(c#"$ar0'ab#%r 4ar8(t s!"c( t/(0 ar( s((" t# /a)( '(ss (35(rt!s(.

T/( #t/(r r(as#" #, t/( *a-( -a5 bas($ #" -("$(r !s */(r( t/( 4!sc#"c(5t!#" #, b(!"-

t/at *#4(" 5art!c!5at!#" !" t/( 'ab#%r 4ar8(t /as c#4( a '#"- *a06 t/(r( !s st!'' a" %"$(r r(5r(s("tat!#" #, t/( str%--'( t/at *#4(" 4a8( */(" tra"s!t!#" ,r#4 ($%cat!#" t# t/( *#r8,#rc(.

It !s */(r( */(" *#4(" -# !"t# t/( *#r8,#rc(6 t/(0 /as b((" $!scr!4!"at( b0 4a" */(" t/(0

"(($ t# $# s#4( *#4(" c#%rs(*#r8 '!8( 4a8!"- a $r!"8 ,#r t/(!r c'!("t a"$ tr(at t/(4 b(ca%s(,#r 4a"6 t/at !s t/( *#4(" ;#b a"$ t/(0 8"#* /#* t# $# !t rat/(r t/a" 4a" /!4s(',. Fr#4 ab#)(

r(as#"6 t/(r( a a's# r('at( t# t/( s#c!(ta' "#r4s t/at ca%s( t/( -("$(r s(-r(-at!#" t# #cc%r a"$ !"

t%r" 5(r5(t%at(s t/( !$(#'#-0 t/at at ()(" a" !"cr(as( !" ($%cat!#"a' (7%a'!t0 ca""#t -%ara"t((

(7%a'!t0 #, #55#rt%"!t!(s !" t/( *#r85'ac(. W/!'( !t !s r(c#-"!9($ t# b( a *#4a":s 5r(r#-at!)( t#c#44!t t# b#t/ %"5a!$ s(r)!c(s !" t/( /#%s(/#'$ a"$ t/( *#r85'ac(6 !t !s (3act'0 t/!s t/at

r(5r(s("ts a" !",r!"-(4("t #" *#4(":s r!-/ts a"$ t/(!r ;#%r"(0 t# (c#"#4!c a"$ s#c!a'

(45#*(r4("t.

T/( !45#rta"c( #, t/!s !ss%( !s t# br!"- %5 t/( c%rr("t s#c!a' ;%st!c( b(!"- carr!($ #%t !"

s#c!(t0 b(t*((" -("$(rs a"$ t# ,#c%s #" 4a3!4!9!"- #" t/( b(st /%4a" r(s#%rc(s a4#"- b#t/

4(" a"$ *#4(" (45'#0((s. T/!s !s */(r(6 Ma'a0s!a" *#4(" */# /a)( !"c#4(6 t/(!r !"c#4( !s'(ss t/a" 4a'( c#%"t(r5arts !" a'' *#r8!"- ar(a. Bas($ #" ==> stat!st!cs ,r#4 t/( M!"!str0 #,

H%4a" r(s#%rc(s6 4a'( */# /('$ t/( s("!#r #,,!c!a's a"$ 4a"a-(rs (ar"!"- a)(ra-( 4#"t/'0

sa'ar0 #, RM+6?6 */!'( *#4(" !" t/( sa4( 5#s!t!#" #bta!"($ #"'0 /a', #, t/( a4#%"t6

RM6. Ma" !" t/( 5r#,(ss!#"a' cat(-#r0 (ar" a" a)(ra-( #, RM&62= b%t *#4(" -(tRM6>+>.

T/!s 5a5(r att(45ts t# (3a4!"( t/( $(t(r4!"a"ts #, -("$(r bas($ *a-( -a5 a"$ !ts

4!cr#(c#"#4!c !45'!cat!#"s. D!,,(r("c(s !" *a-( ar( "#r4a''0 attr!b%t($ t# !45'!cat!#" t# t/(

4!cr#(c#"#4!cs. T/!s 5a5(r !s #r-a"!9($ !"t# s!3 s(ct!#"s. T/( "(3t s(ct!#" r()!(*s t/(


5/17

'!t(rat%r(6 */!'( S(ct!#" I@ $(scr!b( t/( 4(t/#$#'#-0. T/( ,!"$!"-s a"$ $!sc%ss!#" !" S(ct!#" @

a"$ S(ct!#" @I !s c#"c'%s!#" a"$ 5#'!c0 !45'!cat!#".

LITERATURE RE@IEW

D!s5ar!t!(s !" t/( #55#rt%"!t!(s #,,(r($ b(t*((" t/( -("$(rs /as a'*a0s (3!st($ a"$s()(ra' 4(t/#$s /a)( b((" !$("t!,!($ t# 4(as%r( t/( $(-r(( #, $!s5ar!t!(s6 b%t 4a"0 a%t/#rs /a)(

ass%4($ t/at *!t/ t/( (c#"#4!c $()('#54("ts ar#%"$ t/( *#r'$6 t/!s *#%'$ 4#st '!8('0$(cr(as(. R('at!)( *a-(s (ar"($ /a)( c#"s!st("t'0 b((" %s($ t# r(,'(ct t/( s#c!#(c#"#4!c )a'%(

#, !"$!)!$%a's a"$ t/( $!s5ar!t!(s !" !"c#4(s (ar"($ b0 *#4(" a"$ 4(" /a)( b((" at t/(

,#r(,r#"t #, c#%"t'(ss s#c!a' 4#)(4("ts. T/( !"c#4( (ar"($ !s "#t #"'0 t/( r(,'(ct!#" #, t/()a'%at!#" #, a" !"$!)!$%a' b%t !t a's# ("c#45ass(s t/( !"$!)!$%a'


6/17

(ar"!"- a" a)(ra-( '#*(r *a-( *as a r(s%'t #, t/(!r #*" 4a8!"- b0 c/##s!"- t# b( !" '#* 5a0!"-

;#bs. A"#t/(r st%$06 carr!($ #%t b0 M#/a4a$ N#r ===6 %s($ !",#r4at!#" 5r#)!$($ b0 t/( 1?>>

S(c#"$ Ma'a0s!a L!,( S%r)(0 t# ,!"$ #%t t/at 4a'( t# ,(4a'( *a-( rat!# *as '#*(r !" ,(4a'($#4!"at($ #cc%5at!#"s. T/!s ,!"$!"- c(4("ts t/( !$(#'#-0 t/at t/( r(s%'t!"- *a-( $!,,(r("t!a's !"

(ac/ #cc%5at!#" !s a c#"s(7%("c( #, t/( $!scr!4!"at!#" *!t/!" t/at #cc%5at!#"a' -r#%5 !ts(',.

T/( r('at!#"s/!5 t/at (3!sts b(t*((" t/( *a-( $!,,(r("t!a's6 t/at ar( "#t bas($ #" t/( 5r#$%ct!)!t0 '()(' a"$ (c#"#4!c -r#*t/ !s #"( 4a$( %5 #, $!r(ct a"$ !"$!r(ct ,act#rs. B%t t/(

!45act t/at *( ar( c#"s!$(r!"- !s bas($ #" B(c8(r


7/17

MAIN FINDINGS AND DISCUSSION

Increasing theliteracy ratesamong all havebeen a art o! Malaysia"scentral#evelomentlan an# that$hile rates o!

literacy among!emales have

most #e%nitely increase# since the &''(s") the n*mber o! *nemloye#$omen $ho haen to have higher e#*cation have also increase# since&''(+

,hile the statistics #o sho$ that there is higher labo*r !orce articiation!ollo$ing higher levels o! e#*cation attaine# b*t the c*rrent levels are lo$erthan sho*l# be seen in comarison to the male co*nterarts+ Malaysian$omen are more li-ely to $or- as higher levels o! e#*cation are attaine# b*tit may be the rigi#ity o! the !ormal $or-lace that #oesn"t allo$ the !emale

to .oin as easily or that her /*ali%cations #o not meet the re/*irement+


8/17

B*t rather than lac- o! ability) it $ill aear$ith the !ollo$ingso*rces o! #ata that itis a lac- o! oort*nity

o0ere#+ Unai##omestic $or-) ta-ingcare o! the !amily an#chil# rearing are allconsi#ere# to be a$omen"s rerogative$hich has le# to the*nbalance# share o! !amily resonsibilitybet$een the men an#$omen+ So not only is

it #i1c*lt to evenenter the labo*r !orce)or even articiate b*tit is also #i1c*lt toremain active inhan#ling both#omestic care an#!ormal $or-+


9/17

A ma.or !actor that is *se# to arg*e the mere e2istence o! a gen#erbase# $age ga is that not eno*gh !emales enter higher ayingseciali3ations in tertiary level e#*cation) $hich is $hy they earn a lo$eray+ ,hile this artic*lar vie$ is the socio4c*lt*ral ersective !or many)statistics sho$ that not only !emales o*tn*mber males in secon#arye#*cation b*t they also oversha#o$ their male co*nterarts in *niversity

enrolments+

Bet$een the years o! 5((' an# 5(&6) !emales ma#e * a higherroortion) o! varying #egrees) o! enrolments in all the %el#s e2cet !or in7ngineering) Man*!act*ring an# Constr*ction+ This may be a res*lt o! socio4c*lt*ral ersective that 7ngineering) Man*!act*ring an# Constr*ction $ereareas that $ere revio*sly male4#ominate# an# a male rerogative $hichmay have ma#e it har#er !or !emales to enter the artic*lar seciali3ation+ Itm*st also be note# that #ecisions to *rs*e seciali3ations in *niversity arenot #one so in a vac**m) b*t they are ma#e consi#ering the in#ivi#*al"s o$noinion) sit*ation an# bac-gro*n# as $ell as in8*ences that are res*lting

!rom a combination o! all+


10/17

So $hile overall literacy rates !or the gen#ers is a -ey comonent in*shing !or$ar# the Malaysian 7conomic sit*ation an# gen#er arity is beingreache# in several %el#s o! st*#y in *niversity level+ Th*s) res*lting in the

slo$ b*t stea#y brea-#o$n o! #erogatory stereotyes an# the event*alemo$erment o! $omen in the $or-!orce+ The c*rrent male4to4!emale $ageratio re8ects a #i0erent sit*ation+

In the table above) G,G is the Gen#er ,age Ga or the ratio o! male$age to !emale $age+ A G,G o! & is a reresentation o! gen#er arity b*tany ratio more than & ill*strates that men earn more than their !emaleco*nterarts+ For many o! the occ*ations) G,G is relatively on the lo$erratio an# closer to achieving gen#er arity+ Bet$een the years o! 5(&5 to5(&9) the ratio has #e%nitely narro$e# !or Managerial ositons):ro!essionals) Sales an# Service $or-ers) Cra!t an# relate# tra#es $or-ers

an# :lant an# machine oerators an# assemblers+ B*t !or occ*ations li-es-ille# agric*lt*re) !orestry an# %sheries $or-ers as $ell as elementaryocc*ational $or-er) the gen#er #isarity have increase#+

Only !or the ositions o! technicians an# associate ro!essionals #i# theratio o! male to !emale $ages remain stagnant+

As $e have seen in the table be!ore that !emales $ere not onlyrivalling their male co*nterarts in e#*cational system b*t also


11/17

o*ter!orming in several cases) yet there remains a ersistent #isarity inthe $ages o0ere# to both+ In or#er to soli#i!y the e2istence o! #iscrimination)a st*#y $as er!orme# by the Instit*te o! ;abo*r Mar-et an# Analysis


12/17

Th*s) as ill*strate# above) !emale articiation in to tier ositions)bet$een 5(&( an# 5(&9) have increase# greatly+ In areas that $ere !ormerlymale #ominate# roles) $omen have been aointe# as the ea# o! Immigration Deartment) the ea# o! Government Sec*rity O1ce an# theea# o! Research Division) :rime Minister"s Deartment+ The ercentage o!

$omen on the boar# o! #irectors in Ministry o! Finance comanies alsoaeare# to increase to a & ercent !rom the initial &5 ercent+

;abo*r Force :articiation Rate n*mber o! ersons in the labo*r !orce $ho arec*rrently $or-ing or loo-ing !or $or-+? The $or-ing age is also #e%ne# asthose ersons bet$een the ages o! & to 9 years+ The grahs aboveill*strate the nat*re o! the tren# o! labo*r !orce articiation !rom &'E( to5(&9 bet$een males an# !emales+

As can be seen above) in &'E() the line e2hibits t$o h*ms lea#ing tothe ass*mtion that $omen entere# the $or-!orce in their t$enties b*t le!t)res*mably to start a !amily) an# then some chose to ret*rn later on in theirmi#4!orties+ This bimo#al ten#ency o! the !emale ;F:R may be #*e to the !actthat #*ring the &'E(s") most $omen $ere emloye# in the agric*lt*ralsector $hich allo$e# them to leave an# come bac- to the $or- !orce+ B*t asthe years rogresse# an# man*!act*ring an# sector4base# economies cameinto !*ll !orce) the 8e2ibility that *se# to enable ret*rn o! $omen into thelabo*r !orce #isaeare# leaving behin# a *nimo#al tren# o! !emale ;F:R+Many o! the ne$ !actors incl*#e# the rigi#ity o! seniority in careera#vancements an# romotions that res*lte# in those !emale ersons leaving

the labo*r !orce an# having no incentive to ret*rn+

Th*s) #*ring the time bet$een the &'E(s" an# early 5(((s") !emalelabo*r !orce articiation $as at its ea- o! ( ercent !or ages 5(459 years+,hile the time lea#ing a!ter the year 5((() ma.ority o! $omen $ere .oiningthe $or- !orce bet$een the ages 5 to 5' years an# so the ;F:R ea-e##i0erently+ This #elay in .oining the $or-!orce is a res*lt o! an amalgamationo! !actors+ Several o! $hich incl*#e that $omen $ait to receive higher levels


13/17

o! e#*cation be!ore entering the .ob mar-et in or#er to ens*re their ositionin the labo*r !orce+ Many $omen also .oin later as it is res*me# they $antto get marrie# an# have chil#ren be!orehan# so they are not !orce# to e2itthe labo*r !orce mi#$ay+ The shi!t in the ages o! !emales entering the labo*r!orce is the resonse to the economic shi!t that #oes not rovi#e them $ith

$or-!orce 8e2ibility) $hich allo$s them to remain a art o! the $or- !orce !orlonger erio#s o! time+ As is ill*strate# by the less stee #ecline in the!emale ;F:R a!ter its ea- in 5(&( an# esecially in 5(&9+

,hile male ;F:R #oes ea- a little later that the !emale ;F:R) a res*lto! the e#*cation e0ect) it reaches a &(( ercent an# remains consistent tillthe age o! retirement+


14/17

:O;IC IM:;ICATIONS AND CONC;USION

Acc#r$!"- t# a 5r()!#%s st%$06 O:N(!'' &=?&1+ !s !45#rta"t t# '##8 at t/( !45act #,

5r#$%ct!)!t0 b(t*((" t/( -("$(rs !" $!sc%ss!"- t/( !ss%( #, t/( 5a0 -a5 b(t*((" -("$(rs. T/!s !s

b(ca%s(6 #,t(" sa!$ t# b( t/( $!,,(r("c( !" sa'ar!(s b(t*((" -("$(rs !s $%( t# $!,,(r("c(s !" t/(

7%a"t!t0 a"$ 7%a'!t0 #, ($%cat!#" a"$ #t/(r /%4a" ca5!ta' #bta!"($ ,r#4 $!,,(r("t !"st!t%t!#"s. S#

b(ca%s( #, t/!s6 !s )(r0 !45#rta"t ,#r t/( -#)(r"4("t t# 4a8( a b!- st(5 t# !45r#)( t/(

c#45(t!t!)("(ss #, *#4(" !" ,ac!"- t/( c/a''("-(s #, t/( 5a0 -a5 b(t*((" t/( -("$(rs. H!-/

c#45(t!t!)("(ss ca" b( a s#'%t!#" ,#r t/!s 5r#b'(4. G("(ra''06 *#4(" ar( t/( 'ar-(st -r#%5 !" t/(

*#r'$ */# /a)( 5r#b'(4s ca" "#t r(a$ #r *r!t(6 */!c/ !s a55r#3!4at('0 >2 4!''!#" a$%'ts

*#r'$*!$(. Ass!st *#4(" (45#*(r4("t6 !t !s !45#rta"t t# !45r#)( ($%cat!#" b(ca%s( !t:s

!45#rta"t t# b( t/( 4#st !45#rta"t $r!)(r !" t/( $()('#54("t #, 4a"8!"$.

Ma'a0s!a" *#4(" /as a )(r0 /%-( ac/!()(4("t. I" t/( ,!('$ #, ($%cat!#"6 ,r#4 ==? t#

=116 ,(4a'( ("r#''4("t at t/( ,!rst $(-r(( !" P%b'!c H!-/(r E$%cat!#" I"st!t%t!#"s /a)(c#"s!st("t'0 (3c(($($ 5(r 0(ar a"$ t/( =1&=1+ aca$(4!c s(ss!#" >.= #, t/( +162&

ca"$!$at(s */# *!'' 5art!c!5at( !" %"$(r-ra$%at( 5r#-ra4s ar( *#4(". I" t/( 'ab#r 4ar8(t6 t/(

5art!c!5at!#" rat( #, *#4(" /as !"cr(as($ ,r#4 ++.2 !" 1?? t# +?. !" =1. I" t(r4s #, (45'#04("t str%ct%r(6 t/( 5(rc("ta-( #, *#4(" *#r8!"- !" 5r#,(ss!#"a' -r#%5s /as a's#

!"cr(as($6 ,r#4 2. #, a'' *#r8!"- *#4(" !" == t# 1+.> !" =1. T/!s ac/!()(4("t !s t/(

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