Re-examining Gender Earning Differentials in Malaysian Manufacturing

The manufacturing sector is a major avenue for female employment in the urban labor market in Malaysia. Only two studies, both published more than two decades ago, have examined gender earning differentials in this sector. Since then, the percentage of women being educated has increased, along with...

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Main Authors: Cheong, Jia Qi, Suresh Narayanan, Jacqueline Lisa Fernandez
Format: Article
Language:English
Published: The MIT Press 2022
Subjects:
Online Access:https://eprints.ums.edu.my/id/eprint/33463/1/Re-examining%20Gender%20Earning%20Differentials%20in%20Malaysian%20Manufacturing.pdf
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author Cheong, Jia Qi
Suresh Narayanan
Jacqueline Lisa Fernandez
author_facet Cheong, Jia Qi
Suresh Narayanan
Jacqueline Lisa Fernandez
author_sort Cheong, Jia Qi
collection UMS
description The manufacturing sector is a major avenue for female employment in the urban labor market in Malaysia. Only two studies, both published more than two decades ago, have examined gender earning differentials in this sector. Since then, the percentage of women being educated has increased, along with their participation rate, and several laws protecting their rights have also been passed, making it timely to re-examine the earnings gap. We do this by drawing on more recent data from a larger representative survey of manufacturing employees. The Blinder-Oaxaca technique, utilized in the previous two studies, was used to estimate the existing earnings gap and to decompose it to differences attributable to endowments, coefficients (traditionally viewed as subsuming discrimination), and the interaction between the two. We found a smaller gap than previously reported, with better female endowments helping to narrow the gap, and unexplained differences in coefficients being responsible for the remaining gap. The interaction effect was not statistically significant. Contrary to the earlier studies, the differential treatment of women in the manufacturing sector, rather than endowment differences, is hampering the equalization of earnings. This calls for newer approaches to closing the earnings gap.
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spelling ums.eprints-334632022-07-21T07:48:23Z https://eprints.ums.edu.my/id/eprint/33463/ Re-examining Gender Earning Differentials in Malaysian Manufacturing Cheong, Jia Qi Suresh Narayanan Jacqueline Lisa Fernandez HD6050-6305 Classes of labor Including women, children, students, middle-aged and older persons, minorities HD9720-9975 Manufacturing industries The manufacturing sector is a major avenue for female employment in the urban labor market in Malaysia. Only two studies, both published more than two decades ago, have examined gender earning differentials in this sector. Since then, the percentage of women being educated has increased, along with their participation rate, and several laws protecting their rights have also been passed, making it timely to re-examine the earnings gap. We do this by drawing on more recent data from a larger representative survey of manufacturing employees. The Blinder-Oaxaca technique, utilized in the previous two studies, was used to estimate the existing earnings gap and to decompose it to differences attributable to endowments, coefficients (traditionally viewed as subsuming discrimination), and the interaction between the two. We found a smaller gap than previously reported, with better female endowments helping to narrow the gap, and unexplained differences in coefficients being responsible for the remaining gap. The interaction effect was not statistically significant. Contrary to the earlier studies, the differential treatment of women in the manufacturing sector, rather than endowment differences, is hampering the equalization of earnings. This calls for newer approaches to closing the earnings gap. The MIT Press 2022 Article PeerReviewed text en https://eprints.ums.edu.my/id/eprint/33463/1/Re-examining%20Gender%20Earning%20Differentials%20in%20Malaysian%20Manufacturing.pdf Cheong, Jia Qi and Suresh Narayanan and Jacqueline Lisa Fernandez (2022) Re-examining Gender Earning Differentials in Malaysian Manufacturing. Asian Economic Papers, 21. pp. 64-91. ISSN 1536-0083 (E-ISSN) , 1535-3516 (P-ISSN) https://direct.mit.edu/asep/article-abstract/21/1/64/109039/Re-examining-Gender-Earning-Differentials-in?redirectedFrom=fulltext https://doi.org/10.1162/asep_a_00845 https://doi.org/10.1162/asep_a_00845
spellingShingle HD6050-6305 Classes of labor Including women, children, students, middle-aged and older persons, minorities
HD9720-9975 Manufacturing industries
Cheong, Jia Qi
Suresh Narayanan
Jacqueline Lisa Fernandez
Re-examining Gender Earning Differentials in Malaysian Manufacturing
title Re-examining Gender Earning Differentials in Malaysian Manufacturing
title_full Re-examining Gender Earning Differentials in Malaysian Manufacturing
title_fullStr Re-examining Gender Earning Differentials in Malaysian Manufacturing
title_full_unstemmed Re-examining Gender Earning Differentials in Malaysian Manufacturing
title_short Re-examining Gender Earning Differentials in Malaysian Manufacturing
title_sort re examining gender earning differentials in malaysian manufacturing
topic HD6050-6305 Classes of labor Including women, children, students, middle-aged and older persons, minorities
HD9720-9975 Manufacturing industries
url https://eprints.ums.edu.my/id/eprint/33463/1/Re-examining%20Gender%20Earning%20Differentials%20in%20Malaysian%20Manufacturing.pdf
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