Male-Female Wage Differentials in Botswana

Abstract

This paper examines the wage differential between males and females in Botswana. It uses two methods; the quantile regression model and the unconditional quantile decomposition method. Using the quantile regression models, the paper demonstrates that returns to education are significantly different between males and females. Private returns to education for both tend to increase as we move up the education level and from lower part of the wage distribution (10th percentile) to higher parts with females getting higher returns. Furthermore, applying the unconditional quantile decomposition regression model, there is evidence that females are paid less than their male counterparts throughout the wage distribution and the gap increases as we move from lower levels to higher levels. Results show that there is no evidence of the “sticky floor” effect and there is the “glass ceiling” effect in our labour market implying that there may be few females in leadership positions(high paying jobs), hence there is a ‘ceiling’ on their wages. The policy implications of the study are that continuing to invest in human capital development is crucial for Botswana and there is also a need to value females’ work and attract males in highly feminised sectors.