Demography, workforce economy, social and economic policy

Occupational selectivity bias and gender wage gap in Malaysian manufacturing sector

Economic Annals-XXI

Economic Annals-ХХI: Volume 149, Issue 3-4(1), Pages: 109-112

Citation information:
Ismail R., Sahri, H. I., & Yuliyusman, F. (2015). Occupational selectivity bias and gender wage gap in Malaysian manufacturing sector. Economic Annals-XXI, 3-4(1), 109-112. https://ea21journal.world/index.php/ea-v149-26/

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Rahmah Ismail
PhD (Economics),
National University of Malaysia (University Kebangsaan Malaysia)
Bangi, Selangor, 43600, Malaysia
rahis@ukm.edu.my

Hazrul Izuan Shahiri
PhD (Economics),
National University of Malaysia (University Kebangsaan Malaysia)
Bangi Selangor, 43600, Malaysia
hazrul@ukm.edu.my

Ferayuliani Yuliyusman
MEc (Economics),
MKIC International College
Jalan Sultan Sulaiman,
Bandar Al-Muktafi Billah Shah,
Dungun, Terengganu, 23400, Malaysia
ferafyy@gmail.com

Occupational selectivity bias and gender wage gap in Malaysian manufacturing sector

Abstract. This paper aims to investigate gender occupational segregation and wage differentials in Malaysian manufacturing sector using 812 sample of working households collected in 2010–2011. They consist of 545 males and 267 females. The wage decomposition model is used to examine determinants of gender wage differentials. Most studies on gender wage differentials in Malaysia do not take into account the occupational selectivity bias. But in this study, we measure the selectivity bias using gender occupational segregation and incorporate it in the gender wage models. The results show that the sample selection bias is a crucial contribution to gender wage gap and it reduces the contribution of the explained variables. The results demonstrate that the role of discrimination is still pertinent in the Malaysian labour market that substantially affect the gender wage differentials.

Keywords: Occupational Segregation; Gender Wage Gap; Wage Decomposition; Discrimination; Malaysia

JEL Classification: J16; J24

Acknowledgement. Financial support from the National University of Malaysia (University Kebangsaan Malaysia) via project code UKM-AP-CMNB-20-2009-4 is gratefully acknowledged.

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Received 2.02.2015

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