Inthesurveyof2007,thedatacoveredof2492enterprisesacrosstenprovinces: HaTay,HaNoi,Hai Phong,HoChiMinh,LongAn,QuangNam,PhuTho, NgheAn,KhanhHoaandLamDong... earningsandothernon-wagebenefits
Trang 1PoliciesandSustainableEconomicDevelop ment |1
IsGenderPayGapLowin PlantswithMoreFemaleManagers?
EvidencefromVietnameseSmallandM e d i u
m Enterprises
PHAMDINHLONG HCMCOpenUniversity-long.pham@ou.edu.vn
TRANTHIHIEU PetroleumGeneral DistributionServicesJointStockCompany
Abstract
Thegoalofgenderequalityinincomeisnotonlyanimportantmatterofhumanrights butalsobasicrequirementfordevelopmentoffairandefficiency.Studyonthestateofge nderinequalityinincomehasthesignificant
implicationsinmovingtowardtheequalityinsocietyandenhancingtheefficiencyofecon omicandsocialgrowth.Actually,therehaveb e e n manypreviousstudiesrelatedtotheis sueso f genderincomedifference,particularlythefactorsimpactonreducingthegender gapinearnings.Basedonthesepreviousstudies,ourresearchattemptstoinvestigatew hetherthegendergapinearningsislowintheestablishmentswithmorefemalemanager s.Usingthesampleof1043employeesand2492enterprisesfromtheSmallandMediumE nterprisessurveyinVietnamintheyearo f 2007,matchingemployerandemployeedata
anddistinguishingoccupationthestudyendsup345job-cells.Weusethisuniquematchedemployeeandemployerdatatoinvestigatetheimpact offemaleshareinmanagersonthegendergapinearningsaswellascontrollingtheeffects ofbothfirmandworkercharacteristicsonwageofindividual.Inaddition,ordinaryleasts
-c e l l fixedeffe-ctsareappliedt o exploretheeffe-cto f proportionoffemalemanageronm
ale-femaleincomedifference.Variousexplanatoryvariablesforcharacteristicsofworkersa ndplantsareusedascontrolvariables.Theresultrevealsthatthereisanegativerelations hipbetweenthefemaleshareinmanagersandgenderpaygap;thefemaleshareinmana gersrises1 0 % points, thegenderwagegapthuslowersby 0.6logpoints.
Keywords:genderpaygap;matched employee-employerdata
Trang 21 Introduction
Genderpaygapisaglobalproblem.Indeed,male-femaleincomedifferenceisnotonlyoneoftherootcausesofpovertybutalsoma jorfactorthat
distributestohinderthedevelopmentprocess.Thegreatergendergapinearnings are,themorepovertyithastopaydearlyforthataswellasmorem a l n u t r i t i o n st atus,i l l n e s s andotherhardships.I n addition,e c o n o m i c growthw i l l bringm
o r e effectiveforthereductionofpovertylevelinthecountrywhichhasahigherlev elofgenderequality.Moreover,inequalitiesinincomebetweenwomenandmenpr eventtheequaldevelopmentandthism a k e s theuseofresourcesinsocietyineffi cient
Infact,thesituationofgenderinequalityinearningsoccurredinmanycountries,e speciallyinthedevelopingcountries.Itmightbesaidthatthecauseofthisconditio nprimarilyrootedtraditionalperspectivesandpreconceivedi d e a s i n thesocial
aboutthemale-supremacyi n m a n y countries.Thereby,theseleadtotherestrictiono f opportun itiesf o r w o m e n toaccesstheeducationandtraining,thec h o i c e o f p r o f e s s
i o n s , anopportunitytoi m p r o v e professionalqualifications.Thedistribution oflaborbetweenmenandwomenindifferentoccupations,employmentarrange
businesslineisalsoobviousdifferences,which
greatlyaffectedonthed i ff e r e n c e ingenderincome.Furthermore,womenals ohavefeweropportunitiestoaccesstotheseservicesaswellasotherbasicresour cessuchaswater,transportationandmarketing,capital,etc.Thesethingscertai nlyimpactontheirimprovementoftheconditionandeconomicstatus
InVietnam,asreportedbytheInternationalLaborOrganization(ILO)on7thMarch,
2013,thegapo f incomebetweenmenandwomeninVietnamwascontinuouslyi ncreasingwhiletheproportiono f womeninworkforcewashigherthanothercount riesintheworld.Approximately72%ofwomenparticipatedi n thelaborforcei n Vie tnamandthisr a t i o washigherthanthati n m o s t o f othercountriesworldwide.N evertheless,Vietnamwasoneofthefewcountrieswherethegenderwagegapwa sincreasingincontrastwiththetrendinmostofothercountriesinthe2008-2011periodc o m p a r e d
withtheperiod1999-
2007.Moreover,accordingtothe2012-2013GlobalWagesReportoftheILO,genderincomegapofVietnamincreasedby2
%intherecentperiods.StatisticaldataoftheGeneralDepartmento f Statisticsi n 2
0 1 1 indicatedthatw o m e n ' s i n c o m e wasl o w e r thanmen’si n c o m e , ap proximately13%.Also,theGeneralLaborConfederationofVietnam(VGCL)cond uctedas u r v e y o f employees’salaryi n e n t e r p r isesi n 2012.Thisorganizati onsawthatwageoffemalew o r k e r s
wasless,only70-80%oftheirmalecolleagues.Besides,LaborSurvey
Reportpublishedin2 0 1 2 statedtheaveragemonthlyincomeofwomenwaslesst
hanmen’sinalleconomicsectors,state,non-stateandforeigninvestment.Eveninoccupationswhichprimarilyrecruitedfocu sonwomensuchashealthcare,socialworkandsales,womenstillhadalowersalar ythanmalefellowship.Morespecifically,theVGCLsurveyfoundthatwomenoften didthenormalworkwhereasmaleundertookthemanagementpositions
Trang 3Duetotheim porta nt ofthisfield,therewe re thusa lotof re s e a r c h e s abou tgenderpaygapconductedinthepastindicatingthedeterminantsofdifferencein wageofwomenandmenaswell
Trang 4asprovidingsolutionstoreducethisgapsuchasAnderson,Tracy,etal(2001),Hult inandSzulkin(2003),Manning(2006),BlauandLawrence(2007),CohenandHuff
man(2007),Becker(2010),CardosoandWinter-Ebmer(2010),Spencer(2015).InVietnam,studiesaboutgendergapinearningsthe reare
Liu(2002),PhamandBarry(2007)andsoon.Interestingly,relatedtothesolutions givenbytheresearchersinordertoreducegenderincomedifferences,therewasth erelationshipbetweenf e m a l e shareinmanagersandgenderwagegap.Particu larly,intheresearchofHultinandSzulkin(2003)namely“Mechanismsofinequali tyunequalaccesstoorganizationalpowerandthegenderw a g e gap”,theau thorsusedthemultilevelmodelsinordertoanalyzethedatasetofSwedishwhichc
ombinedtheinformationonalargenumberofprivate-sectorenterprisesandalltheiremployees.Thefindingshowedthatgendergapini ncomeinplantswerewiderwhilethereweremoremalerepresentationsamon gmanagersandsupervisorsint h e s e enterprisesandlowr e l a t i v e wageo f f e
m a l e workerinplantsinwhichtherewerenooronlyafewwomeninmanagerialposit ion.Anothernotableresearch,Hirsch’spaper(2013)isoneoftheseabovestu
dies,throughtheevidencesfromlinkedemployer-employeedataforGermany,Hirschfoundthatgenderincomedifferencedecrease dby0.5logpointwhenincreasedthefemaleshareinfirstlevelmanagementby10%po ints.Therefore,f o l l o w s thecornerstoneso f Hirsch’sr e s e a r c h a n d a p p l i e
s forthec a s e ofV i e tnami n ordertoinvestigatetherelationshipoffemaleshar emanagersandgenderpaygap,thisstudyisconductedparticularlyinsmallandm ediumenterprises(SMEs)inVietnamintheyearof2007
2 Dataanddescriptiveanalysis
Allthedata,indicators,andvariablesobtainedfromthedatasetofSmallandMed iumEnterprises(SMEs)i n Vietnami n theyearof2007.Thesurveyswereimplem entedafterthei m p o r t a n t EnterpriseLawof2000hasbeenissuedandtheypro videdavaluablesetofdataabouttheprivatesectorfromSMEsinVietnam.Also,the surveyscontainedthemostcomprehensivedataaboutSMEsi n Vietnam.Thesur veysofSMEshavebeenconductedsixtimes,andthemostrecentoneswereinyea rso f 2009,2011,and2013.Thissurveywasconductedu n d e r partnershipsbet weenthreepartners:InstituteofManagementCentralEconomy(CIEM),theMin istryofPlanningandInvestmento f Vietnam(MPI);Instituteo f LabourS c i e n c
e andSocialAffairs(ILSSA)u n d e r theMinistryo f Labour,InvalidsandSocialAffai rsVietnam(MOLISA);andEconomicDevelopmentResearchGroup(DERG)ofthe universityofCopenhagen.Moreover,thesurveywassponsoredbytheEmbassy ofDenmarkinVietnamintheProgramforEnterpriseDevelopmentSupport(BSPS) Inthesurveyof2007,thedatacoveredof2492enterprisesacrosstenprovinces: HaTay,HaNoi,Hai Phong,HoChiMinh,LongAn,QuangNam,PhuTho, NgheAn,KhanhHoaandLamDong
Specificcharacteristicsofbothenterprisesandemployeeswererepresentedo ndatasetoftheyear2007 Thus,inorder togetmore in-depthanalysisofworkerandfirmspecificimpactonoutcomesuchasgenderinco medifference,auniquematchedemployeeandemployerwasapplied.The2492e nterprisesoftenprovinceswhichhadthedifferencesinsizes,categories,legalown ershipstatusandsectors,alongw i t h 1 0 4 3 employeesw i t h informationo n pe rsonalcharacteristics,j o b features,
Trang 5earningsandothernon-wagebenefitswereconductedinthesubsampleof582firmscoveringalltenabov eprovinces.Aftermatchingemployeeandenterprisedataanddistinguishingfiv
eoccupations-plantsinthedataandexcludingtheworkersinmanagerialoccupations,thedatae ndsu p with345jobcells
Table1presentssomesamplestatistics.Therein,maleworkershastheaverag eofdailywageishigherthanfemaleworker,thedifferenceisapproximately11.19 58.Therawgenderpaygapamountsto20.33logpoints.Thisindicatesthatthereis discriminationaboutincomebetweenmaleandfemalew o r k e r s
Table1
Wagesandfemalesharesinmanagers
n
Men Mea
n
Std.dev Mean Std.dev Grossdailywage(in1000vnd) 45.97
95
21.4490 57.17
53
27.5101 Loggrossdailywage 3.73
58
0.4300 3.939
1
0.5053 Femaleshareinmanagement 0.57
33
0.2392 0.534
2
0.2272
3 Econometricanalysis
Inordertoanswerthemainquestionwhetherornotgenderpaygapislowinplant swithmoref e m a l e amongmanagers,thestudywillbeundertakenbasedonth emethodofHirsch(2013)in whichtheaugmentedMincerwageregressions.The baselinespecificationisafullyinteractedmodel
Lnwi=β1femalei+β2femshmani+β3femalei×femshmani+x’i(γ+femalei×δ))+ui
Lnwi:logdailygrosswageofempl
oyeeifemalei:femaledummy
femshmani:thefemaleshareamongma
nagersfemaleixfemshmani:theinteract
ionofthesetwo
xi:avectorofcontrol variables,xiincludesvariablescapturingtheindividual’shuma ncapital
endowmentandplantcharacteristics
Inthisstudy,β1isastheaverageunexplainedgenderpaygapinthesample.β3ise xpectedtobepositiveinordertoindicatethattheunexplainedgenderincomediff erenceislowerifthefemaleshareinmanagementishigher.Ordinaryleast
squares(OLS)
regressionisatechniqueofstatisticalestimation.Thistechniqueiscommonlyuse dinthelinearregressionmodel.Theaimofthemethodi s fromdiscretesamples,d eterminethefunctionwhichapproximatelyrepresentsthedistributionofthesesa mples,andafterthatestimatethevaluewhichcannotbemeasured.Moreover,th eassumptionsofthismodelrelatedtohomoscedastic,linearityandtheimpacto foutliersarenot
Trang 6difficulttocheck(CravenandSardar,2011).Besides,inordertocontrolforsegreg
ationeffects,thestudyaddsjobcellfixedeffectstoa r r i v e attheunexplainedwithinj o b m a l e
-f e m a l e i n c o m e di-f-ferencethataddressunobservedplantandjobandthusem ploymentsegregation.ThemodelisestimatedbycarringoutinStata
Table2
Wagesregression
OLSregression
Femaleshareinmanagers -0.1422 0.1663
FemalexFemaleshareinmanagers 0.2076 0.2013
OLSwageregressionwithjob-cellfixedeffect
FemalexFemaleshareinmanagers 0.0620 0.1330
Note:***significantat1percent,**significantat5percent,*significantat10percent
Table2showsthekeyresultsofthewageregressionforsampleincludingobserv ationsfromtheplantswhicharesurveyed.Anaverageunexplainedgendergapi n
e a r n i n g s is 28.82logpoints.Althoughtheinteractione ff e c t o f thef e m a l e dummyandthef e m a l e sharei n managershasi n s i g n i fi c a n t statistic,but thepositivesignisthesamewithexpectation.Thiscanreferthatthepaygapislow eredby2.1logpointsiftheshareisincreasedby10%points.Whencontrolsegregat
ionbyaddingjob-cellfixedeffects,bothunexplainedgenderincomedifferenceandtheinteractioni mpacto f femaleandfemaleshareinmanagersarereduced.Inthiscase,thefemal eshareinmanagersrises1 0 % points,thegenderwagegapthuslowersby0.6log
points.Forthecaseofcontrolornon-controljob-celleffect,theinteractionimpactongenderpaygapofthefemaledummyandthep roportionoff e m a l e sharemanagersisinsignificant statistic,butthereisthe negativerelationshipamongtwovariables.Furthermore,theresultsareintheline withearlierfindingsbyHirsch(2013)andHultinandSzulkin(2003),thegenderpa ygapislowerinplantswithmorefemalemanagers
4 Conclusionand policyimplications
Followstheempiricalstudieshavescrutinizedinwhichwaysgenderdifferentia tedrepresentationi n managereffectongenderpaygap,whenthesestudiessup posedthegendergapinearningscanbeexplainedinthe
termsofdiscrimination.Therefore,themainassumptioninthisresearchisthatthe genderpaygapislowerinenterprisewithmorefemalemanagerparticipation.Byus ingmatchedemployerandemployeedataforSMEsintheyearof2007andcontrolli
ngforemploymentsegregationbyincludingjob-cellfixedeffects,thestudyfinds
thattheimpactonmale-femalei n c o m e differenceoffemalesharemanagerhasinsignificantstatistic ,butithasanegativer e l a t i o n s h i p betweenthetwo.Thismayconcludethatt hegenderearningsgapislowerthaninthe
Trang 7plantswithmorefemalemanagers.Research’sfindingsareconsistentwiththep reviousstudiesin
thisfield
Discriminationinincomeofwomenstemsfromvarietyofcauses,possiblydueto incorrectviewsaboutgenderrolesi n s o c i e t y , traditionali d e a s o r prejudice thesefactorsm a y bee l i m i n a t e d througheducationalactivities.Hence,thego vernmentshouldimplementmeasuresabouteducationsynchronouslyandsyste
maticallyaswellascarryoutthepoliciesofsocio-economicdevelopmenttowardsgenderequalitygoalssothatthepeoplechange theviewontheroleofgenderinsociety,suchaspolicytoencourageenterprisetob uildthef a i r competitiveenvironment,c r e a t e equalopportunitiesforbothwo menandmenworker.Inaddition,inthisstudythenumbersofwomeni n v o l v e
d inmanagerpositionhavetheimpactonreducingdiscriminationinincomebetw eenmenandwomen,forthatreasonbusinessesneedtoadoptpoliciestoencoura gewomenparticipationinmanagerasameasuretoreducetheincomegap.Be sides,theresultsalsoshowsthatvariableofeducationhasstrongstatisticalsign ificanttotheincomeofworkers,sofor workerparticularinf e m a l e , theyne ed
toimprovetheirknowledgeandskillsmoreandmoreinordertoshortenthegapi n i ncomecomparedwithmale
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