Exploring Wage Determinants and the Gender Wage Gap in Bangladesh’s Daily Labor Market: Evidence from HIES 2016
Abstract:
This study examines wage determination and gender-based wage disparities in Bangladesh’s daily labor market, utilizing data from the 2016 Household Income and Expenditure Survey (HIES) and employing Ordinary Least Squares (OLS) and Quantile Regression techniques. The findings reveal a pronounced gender wage gap, with females earning on average 62.2% less than males. Although the disparity narrows across the wage distribution, the persistence of a “sticky floor” effect underscores structural inequalities at the lower end of the labor market. Wage outcomes are shaped by both human capital and socio-demographic factors, with their effects varying across different quantiles. The study highlights several policy implications, including the enforcement of equal pay regulations, promoting shared household responsibilities, and extending targeted labor market interventions, particularly within the informal sector. By offering a nuanced understanding of the determinants and dynamics of wage inequality, this research provides critical insights for designing policies that foster a more equitable daily labor market in Bangladesh.
Keywords: Wage determinants, Gender wage gap, Quantile regression, Daily labor market, Income inequality, Bangladesh
Citation:
Mamun, A. (2022). Exploring Wage Determinants and the Gender Wage Gap in Bangladesh’s Daily Labor Market: Evidence from HIES 2016. CPER Working Paper Series No. 04. Available at: https://cperbd.org/working-paper/5
This study examines wage determination and gender-based wage disparities in Bangladesh’s daily labor market, utilizing data from the 2016 Household Income and Expenditure Survey (HIES) and employing Ordinary Least Squares (OLS) and Quantile Regression techniques. The findings reveal a pronounced gender wage gap, with females earning on average 62.2% less than males. Although the disparity narrows across the wage distribution, the persistence of a “sticky floor” effect underscores structural inequalities at the lower end of the labor market. Wage outcomes are shaped by both human capital and socio-demographic factors, with their effects varying across different quantiles. The study highlights several policy implications, including the enforcement of equal pay regulations, promoting shared household responsibilities, and extending targeted labor market interventions, particularly within the informal sector. By offering a nuanced understanding of the determinants and dynamics of wage inequality, this research provides critical insights for designing policies that foster a more equitable daily labor market in Bangladesh.
Keywords: Wage determinants, Gender wage gap, Quantile regression, Daily labor market, Income inequality, Bangladesh
Mamun, A. (2022). Exploring Wage Determinants and the Gender Wage Gap in Bangladesh’s Daily Labor Market: Evidence from HIES 2016. CPER Working Paper Series No. 04. Available at: https://cperbd.org/working-paper/5