Female And Male Wage Differentials In Addis Ababa A Case Study In Four Factories

In this study we used two methods to. estimate the extent of labor ourrnmarket discrimination. The sample is taken from four factories inrnAddis Ababa. The first method is descriptive statistics, whichrnestimate whether there is wage difference between female and male.rnThe findings of the study indicate that there is wage difference,rnwhich is mainly attributable to difference in relevant variablesrnand to a lesser extent due to sex difference. Consistent with thernabove result the second method, i.e., Oaxaca (1973) and Oaxaca-rnRansom (1994) also indicated the existence of wage difference.rnThis method decomposes log of monthly gross wage differentialsrnInto labor market discrimination, the cause of which isrndifference in sex, and difference in relevant ones.rnIn method of Oaxaca (1973) using female wage as a base, laborrnmarket discrimination is found to be higher . while using malernwage as a base the difference between relevant variables causedrnlarger parts of wage differentials.rnIn method of Oaxaca -Ransom (1994) the difference between relevantrnvariables caused larger parts of wage differentials.rnBoth descriptive and wage decomposition indicate the existence ofrnwage difference. The majority part of this difference isrnexplained in both methods by relevant variable difference.

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