Is gender pay gap low in plants with more female managers evidence from small and medium entreprises of vietnam 2007

Structureofresearch...9 CHAPTER2:LITERATUREREVIEW...10 2.1.. Limitations...43 REFERENCES...44 Bibliography...Error!Bookmarknotdefined... LISTOF TABLESTable1:HumandevelopmentindexandHuman

Tran Thi Hieu Master’s Thesis VNP20-2015

enm a n y previousstudiesr e l a t e d t o t h e i s s u e s ofg e n d e r i n c o m e d i

f f e r e n c e , particularlyt h e factorsi m p a c t onr e d u c i n g t h e gendergapi n

Foremost,I w o u l d liket o givemysinceregratitudeandspecialappreciationtomyacademicsupervisorDr.PhamDinhLong,forhispatience,m o t i v a t i o n, enthusiasm,andimmenseknowledge.Hisguidancehelpedmeinallthetimeofresearchandwritingofthisthesis.

Similarly,IsincerelythanktotheScientificCommitteeandstaffsofVietnam-NetherlandProgramfortheirwillingnesstoprovideinformationd u r i n g thelasttime

Lastbutnottheleast,IwouldliketothankmyfamilyandclassmateatV NP 2

0 fortheirbackingandhelpingsothatIcancompletethisthesis

CHAPTER1:INTRODUCTION 4

1.1 Problemstatement 6

1.2 Research objective 8

1.3 Structureofresearch 9

CHAPTER2:LITERATUREREVIEW 10

2.1 Thedefinitions 10

2.1.1 Gender 10

2.1.2 Genderequality 10

2.1.3 Gendergapinearnings 11

2.2 Causeofgenderwagegapandthefactorsimpactongenderwagegap122 2 1 Causeofgenderwage gap 12

2.2.2 Thefactorsimpactongenderwage gap 16

2.2.2.1 Non-economicfactor 16

2.2.2.2 Economicfactors 16

2.2.2.2.1 Characteristicsofemployee 16

2.2.2.2.2 Education 17

2.2.2.2.3 Employment 17

2.2.2.2.4 Geographicfactor 18

2.3 Measurementofgenderpay gap 18

2.4 Theimpactoneconomic-socialdevelopmentofgenderwagegap 19

2.5 Theimpactonmale–femaleincomedifferenceoffemalemanager 20

CHAPTER3:OVERVIEWOFGENDERWAGEGAPINVIETNAM 25

3.1 OverviewthestatusofgendergapinearningsinVietnam 25

3.2 Thefactorsimpactonmale–femaleincomedifference 31

3.2.1 Theageofemployee 31

3.2.2 Education 32

3.2.3 Employment 32

3.3.4.Geography 32

CHAPTER4:METHODOLOGY 34

4.1 Thedata 34

4.2 Thevariables 35

4.2.1 Education 35

4.2.2 Seniority 36

4.2.3 Age ofemployee 36

4.2.4 SizeandIndustry 36

4.3 TheEconometricsModelsandResults 37

CHAPTER5:CONCLUSION,POLICYIMPLICATIONSANDLIMITATIONS 42

5.1 Conclusion 42

5.2 Policyimplications 42

5.3 Limitations 43

REFERENCES 44 Bibliography Error!Bookmarknotdefined.

LISTOF TABLES

Table1:HumandevelopmentindexandHumandevelopmentindexinSoutheastAsia

Area 25

Table2:Theshareofwomen’slaborforceparticipation 26

Table3:Theshareoffemaleinplants 27

Table4:Summarystatistics 38

Table5:Wagesandfemalesharesinmanagers 38

Table6:Wagesregression 39

LISTOFAPPENDICES Appendix1:Correlationofvariables 47

Appendix2:Statisticsvariables 47

Appendix3:OLSwageregression 48

Appendix4:OLSwageregressionwithjob–cellfixedeffect 49

Appendix5:Testforheteroskedasticity 49

Appendix6:Testformulticollinearity 50

Appendix7:TheindividualcategoriesofISIC 50

TheConventionontheEliminationofallformsofDiscriminationagainstwomenOECD Organizationforeconomicco-

HumanDevelopmentIndexGDI

GenderDevelopmentIndexofVietnamUNDP

UnitedNationsDevelopmentProgrammeWEF

WorldEconomicForum

GSO TheGeneralStatisticsOfficeofVietnamVHLSS

VietnamHouseholdLivingStandardsSurvey

v e f o r ther e d u c t i o n ofpovertylevelinthecountrywhichhasahigherlevelofgenderequality.M o r e o v e r , inequalitiesinincomebetweenwomenandmenpreventtheequaldevelopmentandthismakestheuseofresourcesinsocietyinefficient.

Infact,thesituationofgenderinequalityinearningsoccurredinmanycountries,especiallyinthedevelopingcountries.Itmightbe saidthatthecauseoft h i s conditionp r i m a r i l y r o o t e d traditionalperspectivesa n dpreconceivedideasinthesocialaboutthemale-

supremacyinmanycountries.Thereby,theseleadtotherestrictionofopportunitiesforwomentoaccesstheeducationandtraining,t h e choiceofprofessions,anopportunityt o i m p r o v e professionalqualifications.Thedistributionoflaborbetweenmenandwomenindifferentoccupations,employmentarrangementsandjobpositionsinthesamebusinesslineisa l s o o b v i o u s d i f f e r e n c e s , w h i c h greatl

ya f f e c t e d ont h e d i f f e r e n c e i n genderincome.Furthermore,womenalsohavefeweropportunitiestoaccesst o

t h e s e servicesaswellasotherbasicresourcessuchaswater,transportationandm

a r k e t i n g , c a p i t a l , e t c T h e s e thingscertainlyi m p a c t ont h e i r improvementoftheconditionandeconomicstatus

InVietnam,asreportedbytheInternationalLaborOrganization(ILO)on7thMarch ,2013,thegapofincomebetweenmenandwomeninVietnamwascontinuouslyi n

c r e a s i n g w h i l e t h e p r o p o r t i o n ofw o m e n i n w o r k f o r c e was

higherthanothercountriesintheworld.Approximately72%ofwomenp a r t i c i

inVietnamandthisratiowashigherthanthatinmostofothercountriesworldwide.Nevertheless,Vietnamwasoneofthefewcountrieswherethegenderwagegapwasincreasingincontrastwiththetrendi n mostofothercountriesinthe2008-

2011periodcomparedwiththeperiod1 9 9 9

-2 0 0 7 Moreover,accordingtothe-201-2-

Moreover,accordingtothe2012-2013GlobalWagesReportoftheILO,genderincomegapofVietnami n c r e a s e d by2%i n t h e r e c e n t period.StatisticaldataoftheGeneralDepartmentofStatisticsin2011i n d i c a t e d thatwomen'sincomewaslowerthanmen’sincome,approximately13%.Also,theG e n e r a l L a b o r C o n f e d e r a t i o n ofV i e t n a m ( V G

C L ) conducteda s u r v e y ofemployees’salaryinenterprises in2012.Thisorganizationsaw thatwageoff e ma l e workerswasless,only70-

80%oftheirmalecolleagues.Besides,LaborSu rv e y Reportpublishedin2012statedtheaveragemonthlyincomeofwomenwaslessthanmen’sinalleconomicsectors,state,non-

stateandforeigninvestment.E v e n inoccupationsw h i c h primarilyr e c r u i t e d f

o c u s onw o m e n suchashealthcare,socialworkandsales,womenstillhadalowersalarythanmalefellowship.M o r e specifically,the V G C L surveyf o un d thatwomen

o f t e n d i d thenormalworkwhereasmaleundertookthemanagementpositions

Duet o th e importantoft h i s field,therew e r e t h u s a lotofr e s e a r c h e s aboutgenderp a y g a p conductedi n t h e pasti n d i c a t i n g t h e d e t e r m i n a n t sofd i f f e r e n c e inwageofwomenandmenaswellasprovidingsolutionstoreducet

h i s gapsuchasAnderson,T r a c y , e t al( 2 0 0 1 ) , HultinandS z u l k i n ( 2 0 0 3) , Manning(2006),BlauandLawrence(2007),CohenandHuffman(2007),Becker(2010),CardosoandWinter-

Ebmer(2010),Spencer(2015).InVietnam,studiesaboutgendergapinearningsthereareLiu(2002),PhamandBarry( 2 0 0 7 ) andsoon.Interestingly,r e l a t e d t o t

h e solutionsgivenbyt h e r e s e a r c h e r s inordertoreducegenderincomediffe

rences,therewastherelationshipb e t w e e n f e m a l e sharei n m a n a g e r s andg e n d e r wageg a p Particularly,intheresearchofHultinandSzulkin(2003)namely“Mechanisms

ofinequalityu n e q u a l a c c e s s t o organizationalp o w e r andt h e genderwagegap”,theauthorsusedthemultilevelmodelsinordertoanalyzethedatasetofSwedishwhichcombinedtheinformationonalarge number ofprivate–sectorenterprisesa n d allt h e i r employees.T h e f i n d i n g s h o w e d thatgenderg

a p ini n c o m e i n plantsw e r e w i d e r w h i l e t h e r e

w e r e m o r e malerepresentationsamongmanagersandsupervisorsintheseenterprisesandlowrelativewage off e m a l e w o r k e r inp l a n t s

i n whichtherewerenooronlya fewwomeninmanagerialposition.Anothernotableresearch,Hirsch’spaper(2013)isoneoft h e s e abovestudies,throughtheevidencesfromlinkedemployer–

employeedataforGermany,Hirschfoundthatgenderincomedifferencedecreasedby0.5logpointwhenincreasedthefemaleshareinfirstlevelmanagementby10%points.Therefore,followsthecornerstonesofHirsch’sresearchand

appliesfort h e caseo f Vietnami n ordert o i n v e s t i g a t e t h e relationshipoff e m

a l e sharemanagersandgenderpaygap,thisstudyisconductedparticularlyinsmallandm e d i u m enterprises(SMEs)inVietnamintheyearof2007

1.2 Researchobjective

Theobjectiveofthestudyisananalysistofindoutwhetherornotthewomenh a v e ani m p o r t a n t rolei n t h e caseofr e d u c i n g t h e g e n d e r i n c o m

e d if fe renc e w h e n theys t a n d i n t h e assemblylineofmanagersi n s m a l l a

n d m e d i u m plantsinVietNam

Thisr e s e a r c h isa l s o conductedt o a n s w e r t h e m a i n q u e s t i o n thati s genderpaygaplowinplantswithmorefemalemanagers?

Andforthescopeofstudy,itisundertakeninSMEsinVietnam i n theyearof2007

1.3 Structureofresearch

Theresearchisorganizedasfollows.Inchapterone,problemstatementandobjectiveresearcharepresented.Chaptertwoprovidesconceptsrelatedtot h e literaturer e v i e w ,

t h e definitionsandthecausesasw e l l ast h e factorsi m p a c t ongenderpaygap.Chapterthreepresentstheoverviewofgendergapi n Vietnam.Chapterf o u r presentsd a t a description,i n t r o d u c e s methodologymethodused,g i v e s t h e e s t i m

a t e d results.Finally,conclusion,p o l i c y suggestionsandlimitationsarehighlightedinthelast-chapterfive

CHAPTER2:LITERATUREREVIEW

Thischapterp r e s e n t s t h e o v e r v i e w oft h e o r y andd i s c u s s e s p r

e v i o u s studiesrelatestotheresearch.Thefirstpartmentionsaboutsomedefinitionsofgenderi n c o m e d i f f e r e n c e T h e secondpartdiscussesa b o u t t h e causesofmale–

femaleincomedifference.Thethirdpartbrieflypresentsthemeasurementofgendergapinearnings.Thefourthparttalksabouttherelationshipofgenderwagegapandsocialeconomicdevelopment.Andthelastoneindicatestheimpactongenderearningdifferenceoffemalemanager

2.1 Thedefinitions

2.1.1 Gender

UnderKimThiBui,directorofDivisionofWorkers’Compensation(DWC)aboutgenderequality,genderisasociologicalterminologythatreferst o t h e

r o l e s , r e s p o n s i b i l i t i e s ands o c i a l r e l a t i o n s b e t w e e n menandw o

m e n Gendermentionsthedivisionoflabor,divisionofresourcesandbenefitsb

e t w e e n m e n andwomenin aparticularsocialcontext.Genderisformedthrought h e processoflearninga n d e d u c a t i o n , h e t e r o g e n e i t y ,

d i f f e r e n c e i n e a c h country,eachlocality.Itchangesovertimeandaccordstotheprocessofsocio-economicdevelopment

g an dw o r k in g ) inwhi ch womena n d menenjoyedth e same

position,theyhadequalopportunitiestoaccessandusetheresourcestobringbenefitforthemselves,discoveredanddevelopedthepotentialofeachgendert o devotetothedevelopmentofeachcountryandgotbenefitfromthisdevelopment

Therefore,genderinequalitya n d t h e t e r m "discriminationagainstwomen"meansanydistinction,exclusionorrestrictionbasedongenderwhicha f f e c t oraimtodoharmordisablethewomanauthentication,beneficiariesorimplementationofh u m a n r i g h t s andf u n d a m e n t a l f r e e d o m s int h e p o l i t i c a l , economic,social,cultural,civilandotherfieldsonthebasisofequalityofmenandwomennomatterhowtheirmaritalstatuslike

2.1.3 Gendergapinearnings

d i s c r i m i n a t i o n inaccesstoopportunities,thediscriminationinemploymentandoccupationasw e l l asd i s c r i m i n a t i o n i n inheritanceofemployment

a c h i e v e m e n t s b e t w e e n malew o r k e r s andf e m a l e w o r k e r s Witha viewt o h u m a n -

c e n t e r e d , genderinequalityinincomereferstotherelationshipofincomedistributionandgender.Asaresult,thegendergapinearningsisdiscriminationinincomeofm e n andwomenworkers,althoughtheyhavethesamefeatureofcapabilitiesandlaborproductivityaswell(DelRío,Coral,CarlosGradín,andOlgaCantó,2 0 1 1 )

UnderthefinalreportofAnderson,Forth,MetcalfandKirby(2001)toDepartmentforEducation andEmployment,therewereavariety oftheories explainingt h e male–

f e m a l e i n c o m e d i f f e r e n c e Humancapitalt h e o r y e x p l a i n e d t h e gendergapi n e a r n i n g s t h r o u g h t h e d i f f e r e n c e s i n t h e innateabilitiesofmaleandfemaleorbydifferencesintheireducationandexperience,w h i c h translate

di n t o d i f f e r e n c e s i n theirproductivity.M e a n w h i l e , t h e o r i e s r e g a r

d i n g thesocialconstructionofskillswhichwassupposedthehistorically

inferiorstatusofwomenmayhaveledtotheundervaluingoftraditionalf e m a l e skills,andt h i s c r e a t e d a values y s t e m thatpenalizedbothm e n andwomenf o rsuchskills.F u r t h e r m o r e , accordingt o t h e theoryofduallaborm a r k e t , thereweretwolabormarketswithdifferencesi n wagesandconditions.T h e p r i m a r

y laborm a r k e t o f f e r e d t h e highwagesandgoodconditionsinordertogethigherlevelofproductivity,whereasthesecondarym a r k e t hada lowerlevelofpayandpoorconditionst o meetlowerproductivity.Duet o t h e restrictiononw o m e n ’ s laborm a r k e t options,t h e y m i g h t beconcentratedonseekingjobsinthesecondarymarket.Andthiswouldcontributetothegenderpaygap

Withthesamefindings,theorganizationforeconomicco-operationanddevelopment(OECD)hasdefinedthegenderpaygapis

thedifferencebetweenmaleandfemaleearningsexpressedasapercentageofmaleearnings

AnotherdefinitionisoftheEuropeanCommissionhasfoundgenderpaygapasthe averaged i f f e r e n c e b e t w e e n men’san dwom en ’s aggregate hourlyearnings

Inconclusion,alotofpapershavebeenconductedinthepastandkeepgoingt

ot h e presents,butt h e y havesamepointofviewo n t h e definitionofgenderpaygaporthemale–femaledifferenceinearnings

2.2 Causeofgender wagegapandthefactorsimpactongenderwageg ap

2.2.1 Causeofgenderwagegap

AccordingtoAnderson etal(2001),theauthorsprovidedthetheoriessucha s “neo-

classicallaborm a r k e t andt h e o r i e s in corporate a rangeofindividualandinstitutionalfactorswhichcouldexplaintheexistenceofgenderp a y g a p ” H u m a n c a

p i t a l t h e o r y statedthatt h e innateabilitya n d s k i l l w e r e d i s s i m i l a r b e t w

e e n womenandmen,t h i s ledt o t h e productivityofwomenw e r e lessthanmenandmightexplainthegenderpaygap.Differencesinchoice

impliedthewo m e n p r e f e r r e d th e lowerjobtom e n an dthis alsocausedtheconsistenceofmale–

f e m a l e i n c o m e d i f f e r e n c e N e x t , oneoft h e causesofgenderp a y gapw

a s d i s c r i m i n a t i o n , a n d “ f o u r typesofd i s c r i m i n a t i o n , t h e r e w e re rational–

l e g a l , d e t e r m i n i s t , p a r t i c u l a r i s t a n d p a t r o n a g e ” (Jewsona n d Mason,1 9 8 6 ) T h e s o c i a l valueofskills,t h e womenhadbeenundervalueda b o u ttraditionalskillduetothe“historicallyinferiorstatus”ofthem.Besides,c r o w d i

n g “ledtotheexcesssupplyoflaborandalongwiththeeconomicd o m i n a t i o n , t h

e w a g e i n t h e l a b o r m a r k e t reduced”(Bergmann,1 9 7 1 ) M o r e o v e r , f e

m a l e l a b o r “ f a c e d w i t h t h e l a r g e r d e g r e e ofm o n o p s o n y w h e ncompared w i t h malel a b o r , a n d t h e wager a t e f o r womenw o u l d b e l o

w e r ” (Manning,1996).Furthermore, “thepositionofwomenininternallaborm a r k e t wasweakandthismadethedisadvantageforthemaswellascausedt h e genderearningsgap”( K e r r , 1 9 5 0 ) I n a d d i t i o n , “ u n i o n i z a t i o n a

n d p a y –

bargainingwerealsoanimportantfactorinwhichexplainedthegenderi n c o m

e difference,ifwomenwerelesstobehavetheirpaywhichdeterminedbycollectivebargainingandthatwasthecauseofgenderpaygap”(Andersone t al,2001).Andthereweresomeotherfactors whichcouldexplainthegapi nc o m e betweenwomenandmensuchascompensatingdifferentials,employercharacteristicsandsecondaryeffects

InaccordancewiththeFawcettSocietyorganization,whichistheUnitedKingdomleadingc h a r i t y promotingg e n d e r equalityandw o m e n ’ s r i g h t s a t ho

areseveralmaincausesofgendergapinearnings,suchasthemotherhoodpenalty,concentrationinlowwagesectorsandoutrightdiscrimination.Withregardtothemotherhoodpenalty,itissaidthatd u e t o c h i l d c a r e r e s p o n s i b i l i t y , w o m

e n t e n d t o choosep a r t - t i m e workr a t h e r

kinghourstospendt i m e withtheirchildren,theyhavesacrificedbothcurrentandfutureincome.Occupationaldiscriminationorprejudicesaroundtheroleofmenandwomenstillexist.Jobatcleaning,cateringareoften undertakenbywomenandpaid

lessthant h e constructionw o r k , e n g i n e e r i n g w h i c h a r e donebym e n

T h e F a w c e t t Societyorganizationalsopointsoutthat78%oftheworkinginhealth,socialca re , low-

paidsectors,shallbeinchargebywomen Whereas mendo8 8 % ofjobinSTEM(Science,Technology,EngineeringandMathematics)i n d u s t r i e s , w h e r ehaveh i g h payment.S i m i l a r t o abovestereotypes,outrightd i s c r i m i n a t i o nagainstwomenremainsintheworkplace.Discriminationisexpressedthroughdirectandindirectform.Directdiscriminationhappensw h e n withthesamejob,womengetalowerwagethanmen.Meanwhile,i n d i r e c t discrimin ation showingm

nU n i o n andnationallegislation,h e n c e d i r e c t discriminationo n l y explainsa s

m a l l p a r t ofgenderi n c o m e difference.Oneofthemaincausesforwomenarepaidlessthanmenw h e n d o i n g a jobofe q u a l valueisthewayw o m e n ' s c o m

p e t e n c e s a r e valuedcomparedtomen's.Womenof te n d o thejobsrequiringsimilarskills,qualificationsorexperience,suchasjobinhealth,education,andpublicadministrationwherearepoorlypaidandundervalued.Indetails,basedonther

e s e a r c h oftheEuropeanCommissionorganization,therewere32%offemalew

o r k e r s participatedinparttimejob,whereasthisfigureonlyaccountedfor

8 % ofmalew o r k e r s acrosst h e Europe.T h e reasonw h y w o m e n e m p l o y e e s

preferredparttimejobtofulltimejobwasthattheyhadtotakeontheroleoff a m i l y care.

Meanwhile,inVietnam,followingtheresearchofNguyetandBinh( 2 0 0

7 ) , theauthorshavepointedoutthetwogroupswhichimpactongendere a r n i n

g s gap,therearenoneconomicandeconomicgroups Theconceptionsoftraditionalgenderinequalityr e p r e s e n t s f o r noneconomicfactor.T h e s e conceptsaboutgenderinequalityandthesocialstereotypesarebarriersto

thedevelopmentofg e n d e r balance,gendere q u a l i t y r e l a t i o n s Itwast h e f e

u d a l conceptionfromthousandsofyearsaboutthepositionandvalueofwomeni

nf a m i l y ands o c i e t y U n d e r t h e f e u d a l conception,menhavet h e r i g h t toparticipate i n s o c i e t y , performt h e f u n c t i o n ofp r o d u c t i o n , a n d takeresponsibilityaswellasmanagesociety,whilewomenlookafterthehomeandchildren.Menwhohav efull commandanddispositionalllargethingsinthefamily,whereaswomenexecute,servetheirhusbandandchildren.Thewomena r e

c o m p l e t e l y dependent on men,donot haveanyright todisposeofanythinge v e n forthemselves.Economicfactorincludesofcharacteristicsofemployee,e d u c a t i o n ’ s

w o r k e r , laborelement,andgeography.Indetails,characteristicsofw o r k e r sconsistofthoseelementsrelatedtophysicalandgendersuchasage,m a r i t a l status,healthandpercapitaexpenditure.Educationisaveryimportantfactoraffectingtheincomeofworkers.Jobsrequiringhighqualifications,skillsc o m p l e x i t y h a v e

h i g h e r wagesthant h e s i m p l y j o b s T h e r e f o r e , peoplecanac ce ss tohighereducationwillhavetheopportunitytoseekjobswithhigheri n c o m e s L

a b o r e l e m e n t i n c l u d e s professions,professional,workexperience,workorganization.Typically,employeewhoworksintheagriculturalsectorispaidlessthanworksinindustryandservice sectorduetorequirementsandqualificationsoft

h i s sectora r e low.Int h e sameo c c u p a t i o n s , t h e w o r k e r s ' i n c o m e d e

p e n d s o n t h e i r e x p e r t i s e andworke x p e r i e n c e , sincet h e complexworkgivea betterwagethananeasyj o b M o r e o v e r , e m p l o y e e s w i t h m o r e

experiencesusuallydojobfasterandbetterthanthosewithlessexperience,h e n c e theytakehigherwage.

2.2.2 Thefactorsimpactongenderwagegap

2.2.2.1 Non-economicfactor

Accordingt o t h e WorldBank(WB)i n 2 0 0 1 , t h e

c o n c e p t s ofgenderinequalityorthestereotypesofsocietyaboutgenderareobstaclestothedevelopmentofg e n d e r balance,genderequalityrelationshipb e t w e

e n maleandfemale

Theperspectivesfromfeudaltimeaboutthevalues,positionofwomeni n familyandsocietyisverybackward,butitisnoteasytochange,suchasmena r e entitledtoparticipateinsocialwork,standoutperformingthefunctionofproduction,t a

k e r e s p o n s i b l e f o r s o c i a l management,t h e s e t h i n g s m a k e menrespectedbysociety.Whilewomentakeontheroleofreproductionandcommunity,c a r e andregenerationofl a b o r , suchash o m e w o r k e r , c h i l d c a r e Mostoft h e w o

r k s o f t e n d o notgeneratei n c o m e andt h e y t h e n c o m p l e t e l y dependon

evenforthemselves.T h e s e arethecausesthatlimitopportunitiesforwomentoaccesseducation,c a r e e r

c h o i c e s Thesedisadvantagespreventtheimprovementoftheeconomicstatusofwomenandthuscreateinequalitiesinincomethanmen

2.2.2.2 Economicfactors

2.2.2.2.1 Characteristicsofemployee

Characteristicsofworkerincludethefactorsrelatedtothephysicalandt h egender,suchasage,health,andmaritalstatusofemployee.Theempiricale v i d e n

c e s showthatthein come ofanemployee dependsontheageofhers W h e n t h

e w o r k e r i s young,shegetsa lowwage,a f t e r thatthewagew i l l beincreasedalong

withthegrowthandaccumulationofherhumancapital,andm i t i g a t e s whensheiselderly.Moreover,theincomeoftheyoungmanworker

menandwomen,thegen der characteristicsprescribed i f f e r e n t conditionsinm

en andwomen,thesedifferencesleadtothedivisionofworkinwhichtheconcentrationofwomeninsomecareersisrelativelyfew,thismakesthewageofthewomendonotavoiddeclineandthuscausewagedifferencesbetweenm e n andw o m e n M a r i t a l statushasa similari m p a c t t o malew o r k e r s andf e m a l e workers,whentheygetmarriedandhavechildren,duetoincreaseoft h e needsfortheirliving,thismakesthedemandforworkseekinginordertoe a rn extraincomesforbothmaleandfemalelabor.However,thereisdifferentt h i n g betweenmaleandfemale,womenhavetotakeonmoreresponsibilitiest o careforfamilyandchildren,sincetheselimittheopportunitytoparticipateinproductionandhencetheirincomeislowerthanmen's

2.2.2.2.2 Education

Educationisa v e r y i m p o r t a n t factora f f e c t i n g t h e i n c o m e ofw o r k

e r s Wagewillbeincreasedforthejobsrequiringhighqualificationsandcomplexskills.B o r i s ( 2 0 0 5 ) p r e s e n t e d t h e relationshipb e t w e e n i n c o m e andyearsofschoolingofworkersthroughwageandeducationcurve,pointedoutbusinesseswerewillingtopaythesalarycorrespondingtoeachlevelofeducation,expressedtherelationshipbetweensalaryandnumberofyearsofschooling

2.2.2.2.3 Employment

Employmentfactorscompriseofindustry,expertise,experienceandtypeofenterprise.Typically,theemployeeworksintheagriculturalsectorispaidlessthanothersectorsbecausethissectordoesnotrequirehighskillsandqualificationsf r o

m employees,t h e y justhavegoodphysicali n ordert o undertakeworkwell.Besides,inthesameindustry,workers'incomealsodependonth e e x p e r t i s e andexperienceoft h e themselves,becauset h e

complexwork ispaidwithhigherwagethansimplejob andtheworkerhasthet i m e t o e x p o s e j o b l o n g e r t h e y canc o m p l e t e t h e jobfasterandbetterthanthosewithlessexperience,sotheythengethigherwage.

Typeofenterpriseisalsooneofthefactorsthataffectearningsbetweenm e nandw o m e n , t h e

o r g a n i z a t i o n s a r e strictlygovernedb y law,theyw i l l compliancethepolicyofgenderequalityandthereforewomenlaborwillr e c e i v e incomewithmoreequality

2.2.2.2.4 Geographicfactor

Incomeispaidtoemployeeswithensuringtocovertheirlifeandfamily.Becausethestandardsoflivingandexpendituresaredifferentinvariousregions,soincomeisalsodifferentindiverseregions.Ordinary,laborsinurbana r e a havehigheri n

c o m e thanr u r a l a r e a s i n t e r m s oft h e s a m e natureandc o m p l e x i t y job

2.3 Measurementofgenderpaygap

Thegenderwagegapreferstothedifferenceinincomebetweenfemaleandmaleworker(PayEquityCommission,2012).Inaddition,thisgapisalsoc a p t

u r e d asapercentage(StatisticsNewZealand,2014)asbelowformula:

Inwhich,payfor workercanbemeasured byhourly,weeklyormonthly.Moredetails,whenthepurposefocusesonanalyzinglabormarketand

povertyoutcomesfornumerousofmenandwomen,monthlyearningsarepreferable.Meanwhile,hourlyearningsarefavorableinthecasecomparisonearnin

occupationsorenterprises,witht h e moreappropriate.Usually,thegapmeasuredbyhoursissmallerthanbyoverthelongertimeperiods.Thisisbecausewomenh

avetendencytoworkf e w e r hoursforincomethanmendoinmostofthenationsaroundtheworld.

2.4 Theimpactoneconomic-socialdevelopmentofgenderwagegap

ComeafterWorldBank2001(WB),genderinequalityinincomeisoneofthecausesofpovertyaswellasafactorinasignificantimpedimenttoeconomicdevelopment.Besides,theinjustices thatwomensuffer duetoinequality,italsohasthedisadvantageoftheirfamily.Incomefromlaborisak e y sourceofrenewableenergytowomenworkersnotonlyofthemselvesbutalsotheresourcestoensurethequalityoftheirfamilylife.Thestatusofgenderinequalityinincomeleadstowomenarelimitedregenerativeabilityoflabor,r e s t r i c t e d accesst o technology,educationandt r a i n i n g alongw ith m o r e difficultiesd u e t o b u r d e n ofworkloadf a m i l

i e s F u r t h e r m o r e , l a c k i n g ofdiscretioninthefamilyisthecauseofthehighermortalityrateofmothersandinfants,familyhealthandlesschildrenschoolingattendance,especiallyfemalechildren

Moreover,genderi n e q u a l i t i e s i n i n c o m e , r e d u c e s productivity

i n t h e barracksandbusinesses,t h e r e b y , limitst h e potentialf o r p o v e r t y r e

d u c t i o n andsustainseconomicprogress.Byobstructingtheprocessofaccumulationofh u m a n capitalaswellasrestrictingaccesstoproductiveresources,therighttoengagei n productionactivities,leadingtoe f f i c i e n t allocationof r e s o u r c e s i

n society.Havinglowerincomethanmenalsocauseslimitationofcreativepossibilitiesandmotivationtoimproveandenhancetheproductivityoflabori n women

Inaddition,genderequality,especiallygenderequalityinincomeist a r g e t

Genderequalityinincomeenablestomaintainaprogressofsociety,prosperityandsustainabledevelopment.Itdemonstratest h e soundness,efficiencyandrevolutionaryincommitmentandimplementationofguidelinesandpoliciesofcountriesinordertoimplementt h e s e objectives.Ino t h e r words,genderinequalityi n incomesi s oneoft h e

reasonsf o r w e a k e n i n g t h e abilityt o managet h e stateofa country,t h e r e b y r

e d u c i n g thevalidityofthepolicytodevelop

Asidefrom,empiricalresearchestypicallyHaas(2007)hasconductedastudyontherelationshipbetweeneconomicdevelopmentandgenderpaygaporthenexusofeducationattendanceandwageinequalitytothesizeofgendergapinearningsaswell.InHass’sstudy,theauthornotonlybasedonthetheoryofbothsupplyanddemandandhumancapitalbutalsoappliedtheinverted–

Uc u r v e ofS i m o n K u z n e t s Kuznets’i n v e r t e d –

U c u r v e m o d e l w h i c h hasthehypothesisstatesthatin a countrythepercapitai

n comeandtheamountofi n c o m e havet h e relationsw i t h e a c h other.Cross–sectionald a t a hasbeencollectedf r o m t h e U n i t N a t i o n s H u m a n Developmentreporti n t h e yearof2 0 0 5 Besides,aratio ofmale-

female earningshasbeenusedasdependentvariable,meanwhileanindependentvariablewasdeputizedbygrossdomesticproduct( G D P ) percapita.Althought h e r e

s e a r c h hassomeunavoidablelimitations,particularusagesoftheGDPpercapitalrepresentedtheeconomicdevelopment,inotherwords,itwasnotallaspectsofdevelopmentthatwouldbeandalso,theroleofhumancapitalwasnotsupportedinthispaper.Nevertheless,theresultsoftheOLSregressionanalysishaveshowedthatthesizeofmale–

f e m a l e i n c o m e d i f f e r e n c e wasi n c r e a s i n g w h e n t h e economicprocessdeveloped, e xc ep ti on for highl e v e l ofpercapitali n c o m e ; wageinequalityandgenderincomedifferencehadthepositiverelations

2.5 Theimpactonmale–femaleincomedifferenceoffemalemanager

Undert h e s o c i a l p s y c h o l o g y ofi n t e r g r o u p r e l a t i o n s ofTajfel( 1 9 8 2 ) , individualshavetendencytoprioritizemembersintheirgroupthanthem e m b e r s inothergroups.Followingthistheory,itmightbestatedthatwomeni n managerialtitlesarelikelyto appreciatefemale workersthanmaleworkers,t h i s canresultintheinfluenceonthewageoftheirsubordinatesand

20makethegenderi n c o m e d i f f e r e n c e narrower.Therea r e v a r i e t i e s ofstudiesaboutt h e

nt h e wageofsubordinatedw o r k e r i n S w e d e n Theauthorse s t i m a t e d thewagefunctionofmaleandfemaleworkers,whereasoneofthee x p l a n a t o r y var

andt h i s functionw a s e s t i m a t e d separatelyf o r privateandpublicsectors.F r o

m t h e i r r e s e a r c h , t h e y cameu p w i t h a conclusionthatt h e proportionofm

negativeeffectonwageoffemale.Andt h i s e f f e c t onprivatesectorwasclearlystrongerthani n publicsector

Thesameresultw a s conductedb y H u l t i n andS z u l k i n in2 0 0 3 , statedthatthelargermaleswereparticipantinmanagersandsupervisorsthenthew i d e

r male–

f e m a l e i n c o m e d i f f e r e n c e b e c a m e Int h i s r e s e a r c h , H u l t i n andSzulkinusedamatchedemployer–

employeedata,andthedatacoveredamountofprivatefirmsofSwedenintheyearof2003.Asidefromthis,multi-

levelmodelwasappliedtoexaminetheinfluenceofmaleshareonmanagersandsupervisorsonthegenderwagegapaswell.Hierarchicallinearmodelingormultilevelmodelingisoneoftheappropriatestatisticalmethodswhichareappliedfornesteddata(BrykandRaudenbush,1992).Thismethodisusedforsomepurposess u c

h a s prediction,d a t a r e d u c t i o n andcausali n f e r e n c e (Gelman,2012)

Anotherresearchrelatedtothisfield–

genderincomedifference,CohenandHuffman(2007)hasuseddatafromalllargeU.Sprivatesectorfirmswhich

werecollectedbytheU.S.Equalemploymentopportunitycommission(EEOC)i n

2 0 0 2 Alongwithapplyingt h e hierarchicallinearmodel,itallowedtheauthorstodecomposethetotalvariancesinwagesintothreecomponentparts:individuals,jobsandlocali n d u s t r i e s C o h e n andHuffmane x a m i n e d t h e influencesofboththerepresentationofwomenamong managers andstatuspositionoffemalemanageronwagesformenandwomen.Theirfindingsconfirmedthegenderearningsgapreducedwhenhavingmorefemalesamongmanagers,especiallyfemalemanagersholdhigh–statuspositions

CardosoandWinter-Ebmer(2010)alsoexploredtheinfluenceoffemaleemployersandgendersegregationonwagesinPortugal.Theirresearchbasedonalinkedemployer–

employeedatasetwhichannuallycollectedbyt h e MinistryofemploymentinPortugalfortheperiodfrom1987to2000.Thesed at acoveredthepopulationofprivatefirmswithwageearns

inthemanufacturingandserviceindustries.TheresultsfromrunningOLSregressionhavebeenfoundoutthatfemalebenefitedfromhigherwagesinfemale–

ledf i r m thaninmale–ledfirm.Moreespecially,themale–

femaleincomedif ference reducedby1.5%whenfemaleled.However,thefindingsalsoshowedthatthewagesofbothfemaleandmalewerelowerwhentherewasahighershareoffemaleinafirm

Shin( 2 0 1 2 ) hasu s e d compensationd a t a f r o m 7 , 7 1 1 executivesw h

o managed831U.Sfirmsduringtheperiodfrom1998to2005,inordertotestthehypothesis

thattherewasalargeroffemaledirectorsonthecompensationc o m m i t t e e orboardofdirectors,therewassmallergendergapinpaymentint h e r e Moreover,anotherhypothesisassumedi n t h i s studywasthatwhenf e m a l e seatedontopdecision –

ma ke r, whichm e a n t theyhada reallyimportantroleint h e f i r m , t h i s m i g h t

c o n t r i b u t e thecareersuccessoft h e i r f e m a l e subordinates.T h e benefitsbro

ughtf r o m suchf e m a l e leadersw o u l d femalegaponearnings.However,thishypothesishas

leadtonarrowthemale-notbeensupportedduetot h e

l a c k ofdata.T h i s hypothesisneededmorenumbersandcaculations.Beside,hisresearchhasappliedtherandom–

effectr e g r e s s i o n withrobuststandarderrors,whereasinformationofobservationsw a s usedt o e s t i m a t e t h e c o e f f i c i e n c i e s a n d sot i m e –

invariantv a r i a b l e s T h e findi ng s impliedthatcreatinggreaterpositionshasdefinitelyeffectsonfemaleexecutives’c o m p e n s a t i o n w h e n havingm o r e f e m

a l e leadersont h e topmanageroront h e boardofd i r e c t o r s , thent h e genderpaygapwasclearlyr e d u c e d

Next,inthestudyofHirsch(2013),theauthorusedthecross–

sectionalm o d e l ofl i n k e d e m p l o y e r –

e m p l o y e e d a t a i n 2 0 0 8 T h e datasethadbeencollectedbyInstituteforemploymentresearchandhadbeenmatchedbetweenG e r m a n plantsandallemployeeswhoworkedfortheseplants.Theresearchaimedtotestwhethertheunexplainedgenderpaygapwassmallerinplantsw i t h highershareoffemalesamongmanagersorn o t Int h i s study,H i r s c h appliedtheMincerwageregressionsandaddedliteraturesintwodimensions,controlledforsegregation effectsbyaddingjob–

celleffectsaswellasinvestigatedt h e i m p a c t s ongendere a r n i n g s gapoff i r

s t a n d second–

levelmanagers.Thefindingshadthesameconclusionwithsomepreviousr e s e a r

c h e s regardingtogendergapinearnings.Therewasnodoubtthattheunexplainedmale–

femaleincomedifferencewassignificantlylowerinplantsw i t h higherproportionoffemaleamongmanagers.Furthermore,theeffectwaslargerforthesecond–

levelmanagerthanfirst – level manager becausethesecond–

levelmanagersweremorelikelytobeinvolvedwithhiring,grouping,andmakingpromotiondecisionwiththeirsubordinates