Gender Earning Differential In The Ethiopian Public Sector.

This paper presents the analysis of the determinants of gender wage differential in thernEthiopian Public Sector using the 2006 Urban Employment and Unemployment Survey. ThernOaxaca (1973) and Neumark (1988) techniques are used in decomposing the gender pay gaprnbased on two specifications of wage equation. One of the specifications constitutes selectivityrncorrection terms while the other does not. Results from both specifications show that 52 to 61rnpercent of the gender wage gap is explained by observable characteristics whereas thernremaining proportion is the unexplained part of the differential. Differences in human capitalrnendowment and occupation contribute nearly the same amount to the explained pal1 of thernearnings differential. The result of the analysis fails to support the hypothesis of no genderrnwage discrimination in the public sector. Based on this result, the study implied the need forrnallocating a substantial amount of resources on girl s' education and the strengthening of thernlegal and institutional framework that penalizes wage discrimination against women.

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