Occupational selectivity bias and gender wage gap in Malaysian manufacturing sector
Occupational selectivity bias and gender wage gap in Malaysian manufacturing sector

Summary/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.

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