8/7/2019 Gender Wage Gaps

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Gender Wage Discrimination in Bangladesh

Written by Shaila Afroz Khan, Bushra Mostafa, Rezaur Rahman, HasiburRahman , Shati Itminan

East West University

Compensation differential in the jobs of women and men is a crucial issue in themodern age. Although the gap between women and mens wages has narrowedsubstantially since the advent of the Equal Pay Act in 1963 and several otherequal pay movements, there still exists a significant wage gap that cannot beexplained by differences between male and female workers in labor marketexperience and in the characteristics of jobs, they hold.

According to a recent study conducted by International Labour Organization(ILO), discrimination may be preventing women in Bangladesh from earning thesame wages as men. The findings are based on the largest occupational wage

survey ever conducted in Bangladesh. The study gives the first estimates ofgender wage gaps by industry, education, and workplace size that take intoaccount workers age, occupation and geographic location.

Based on the survey, it revealed that: women earn 21 per cent less per hour thanmen. Another key finding is that the gender wage gap is not fully explained bydifferences in education, age and job location. Another is that segregation of thesexes into different industries and different types of occupations in the country isdriving down womens average wages.

The largest male-female wage gaps were found in the construction, hotel and

restaurant industries (in which women earn an average of 30 percent less thanmen), among workers with primary education or less, and in mid-sizedenterprises (10-99 workers). The smallest gaps are in the service industries(education, health and social work). The survey results indicate that womensunequal access to certain types of jobs is one key factors of this discrimination.

To resolve these dismal practices, Policy makers need to consider measures toreduce occupational segregation and promote education for all as a way ofimproving gender equality and raising living standards.

To crown all, Education plays an important role. The study shows that as

womens education increases, the male-female wage gap decreases, becausewomen tend to see more benefits from additional education in terms of earningsthan men. Women who have not completed primary education earn an averageof 22 per cent less than their male equivalents, but this differential narrows toonly four per cent for those with secondary education and eight per cent for thosewho have completed tertiary education.