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Gender Compensation Differentials in Jamaica
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Journal Article
Gender Compensation Differentials in Jamaica
1996
Overview
An investigation is made of the nature of compensation differentials between men and women and occupational segregation in the formal sector in Jamaica. Formal-sector jobs in a developing country are characterized as better paying and having better working conditions than informal-sector jobs or self-employment. In Jamaica, 48.4% of workers were employed in formal-sector jobs in April 1988. If particular members of an economy either are excluded from the formal sector (through discrimination) or do not find it in their interest (in terms of relative rewards) to pursue jobs in the formal sector, the economy loses valuable human productivity and the government loses revenues from those potential taxpayers. The mean salary for women in the Jamaican formal sector is 80% of the mean salary for men. By controlling for various human capital and job characteristics, the degree to which wage differentials in Jamaica are explained by differences in individual characteristics and the degree to which they are left unexplained is identified.
