Education, Earnings and Gender Discrimination in the Nigeria Labour Market

Filed in Current Projects, Economics Project Topic by on September 11, 2020

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Education, Earnings and Gender Discrimination in the Nigeria Labour Market.

ABSTRACT

This study investigates the level of gender inequality in the Nigeria labour market and how  such inequality is explained by characteristics of men and women in the labour market.

The 2008/2009 harmonised survey data especially the labour and employment component were employed in the analysis. Within the framework of Mincer type specification  of  wage equation, this study estimates ordinary least squares (OLS) at different levels of education.

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Heckman two step sample selection model was used to control for possible  selection bias  in the wage equation since this is always present in sample truncation. In  order  to  explain  gender gaps in earnings at different levels of education Oaxaca type decomposition technique was employed in the analysis.

The results show that there is huge gender earnings gap to the disadvantage of women in the Nigeria labour market and that the level of this gap declines as the level of education increases.

The study also finds that  endowments  which  are  the observed characteristics of men and women work to reduce the level of gender earnings gap significantly.

This study recommends among other things, that  government  should  ensure girls obtain higher educational qualifications by providing them support beyond primary and secondary education.

Also, women should be encouraged to  participate  in  the  nonwage labour market activities since most of these activities have higher earnings potentials.

TABLE OF CONTENTS

Title Page – – – – – – – – – – i
Approval Page- – – – – – – – – – ii
Certification Page – – – – – – – – – iii
Dedication – – – – – – – – – – iv
Acknowledgements – – – – – – – – – v
Table of Contents – – – – – – – – – vi
Abstract – – – – – – – – – – ix

CHAPTER ONE (Introduction)

1.1 Background of the study- – – – – – – – – – 1
1.2 Statement of the problem – – – – – – – – 3
1.3 Research questions- – – – – – – – – 8
1.4 Research objectives – – – – – – – – – – – 8
1.5 Research hypothesis – – – – – – – – – 8
1.6 Policy relevance – – – – – – – – – – – 9
1.7 Scope of the study- – – – – – – – – 11

CHAPTER TWO (Literature Review)

2.1 Conceptual framework – – – – – – – – – – 12
2.1.1 Gender discrimination – – – – – – – – – – 12
2.1.2 Earnings – – – – – – – – – – 13
2.1.3 Educational attainment – – – – – – – – 15
2.1.4 Labour market – – – – – – – – – – – 15
2.1.5 Labour force participation – – – – – – – – 16
2.1.6 Labour supply – – – – – – – – – – – 16
2.2 Theoretical literature – – – – – – – – – 18
2.2.1 The human capital theory – – – – – – – – 18
2.2.2 The overcrowding theory – – – – – – – – 19
2.2.3 The discrimination theory – – – – – – – – 20
2.2.4 The dual labour market theory – – – – – – – 21
2.2.5 The feminist theory – – – – – – – – 22
2.2.6 The stratification theory – – – – – – 23
2.3 Empirical literature – – – – – – – 24
2.3.1 Gender discrimination – – – – – – – – 24
2.3.2 Earnings and gender discrimination – – – – – – 26
2.3.3 Gender discrimination and Nigeria labour market – – – – 28
2.3.4 Education, earnings and gender discrimination – – – – 31
2.4 Summary of literature – – – – – – – – 33
2.5 Identified gaps in the literature – – – – – – – 33

CHAPTER THREE (Methodology)

3.1 Model specifications – – – – – – – – 35
3.1.1 Estimation issues – – – – – – – – 36
3.1.2 Decomposition of gender earnings gap – – – – – 37
3.2 The data – – – – – – – – – – 38

CHAPTER FOUR (Presentation and Interpretation of Results)

4.1 Descriptive statistics – – – – – – – – 39
4.2 Gender and determinants of earnings results – – – – – 40
4.3 Determinants of gender earning – – – – – – – 42
4.4 Policy implication of the results – – – – – – – 44

CHAPTER FIVE (Summary of Findings, Policy Recommendations and Conclusion)

5.1 Summary of findings – – – – – – – – 45
5.2 Policy recommendations — – – – – – – 46
5.3 Conclusion – – – – – – – – – 47
References – – – – – – – – – – 48
Results Appendix – – – – – – – – – 56
Estimation Appendix – – – – – – – – 60

INTRODUCTION

1.1 Background of the Study

Gender discrimination has become a contemporary issue which has featured both in national and international debates in developed and developing countries of the world. This has also attracted the attention of researchers, academic, public analysts and the society in general.

There is a growing concern among economists and labour leaders that discrimination at work place is a breach of human right with harmful effects on human ability, welfare, economic growth and productivity.

Labour market studies have also shown that where discrimination exists in the labour market, it generates other socio-economic inequalities that sabotage social cohesion and work relationship and act as a break on the reduction of poverty and national tragedies (International Labour Organization (ILO, 2007, Ogbogu, 2010).

United Nations Development Programmers (UNDP, 2009) observed that between 1985 and 2008, income inequality in Nigeria worsened from 0.43 to 0.49 percent, thus Nigeria ranks among the highest unequal countries in the world, despite its vast resources.

However, in the area of education, there is a clear case of inequality. Different observations  have been made    in this direction. For instance, in Third World countries, evidence shows  that  continuous gender inequality hinders development in education as well as economic growth  (Klasen, 2002).

Gender stratification research reveals that the discrimination against women  in education is not only devastating on humanitarian grounds, but also a major hindering factor towards achieving economic development.

Increased access to education is viewed as  the means for obtaining gender parity as well as progress in economic development.

However, limited access to education for girls in Nigeria as well as in many other developing countries persists and continues to be a major concern for policy prescribers and the international community as a whole (Stromquist, 1989).

REFERENCES

Adegoroye, A. and Adegun, O. (2008) Gender disparity in the informal sector employment opportunities in a Nigeria state economy. The Social Sciences, 3(1) pp. 1-5.

Adeleke, O., Adelalu, K., Matanmi, H., and Olaniyi, O. (2008).Gender and productivity differentials in maize production in Afijo Local Government Areas of Oyo State. Agricultural Journal, 3 (3) pp. 199-203.

Agu, U. and Evoh, C. (2011). Macroeconomic policy for full and productive and decent employment for all: The case of Nigeria, ILO Employment Working Paper No. 107.

Arrow, K. (2003). Higher education as a filter. Journal of Public Economics 2: 193 – 216. Aminu, A.  (2010). Determinants of participation and  earnings in wage employment  Nigeria 5th IZA/World Bank Conference: Employment and Development Cape Town, South.

Bankole, A. and Eboiyehi, F. (2000). Formal education, women employment and poverty. Gender and Behaviour. Vol. 1, pp. 94 – 114.

Barro, R. and Lee, J. (2010). International data on education attainment: updates and implications. Department of economics. Harvard university data set. Retrieved from http/www.cid.harvard.edu/ciddata.

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