A Simple Model of Unpaid House-Work. Occupational Segregation and Gender Discrimination in the Vietnamese, Thailand & South African Labor Markets

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1 A Simple Model of Unpaid House-Work & Occupational Segregation and Gender Discrimination in the Vietnamese, Thailand & South African Labor Markets Nanak Kakwani & Hyun H. Son (International Poverty Centre - UNDP)

2 Objective A. Unpaid work in households - An analytical framework (no empirical results) B. Paid work in labor markets - Analyze gender disparity in earnings in labor markets: Vietnam, Thailand, & South Africa Determinants of earnings - Hours of work - Education - Work experience - Regions & Area (urban/rural) - Ethnicity

3 Disparity can be explained by two factors -Occupational segregation -Labor market discrimination Data Source -Vietnam: 2002 LSMS -Thailand: 2004 Labor Force Survey -South Africa: 2002 Labor Force Survey

4 A. Unpaid Work in Households (1) w = wage rate of ith person in jth household h y j h = 1 n 1 h j = n j w = hours worked in labor market by ith person in jth household i i w h h = per capita household income in labor market = hours worked at home by ith person in jth household = per capita unpaid hours of work in jth household = monetary value of per hour household work y j l = per capita consumption of household production M h h = M = hours of leisure enjoyed by ith person in jth household 0 < l <1, where 1 is the maximum leisure enjoyed ( ), ( ) < 0, ' '' g l > 0 g l g(1) = a, g(0) = 0

5 c = y + y + g g g g j j A. Unpaid Work in Households (2) ( l ) ( l ) = a ( 1 l ) ' '' [ ] 1+δ 1 ( ) ( )( ) δ l = a1+ δ 1 l > 0 ( ) ( )( ) δ 1 l = aδ 1+ δ 1 l < 0 ( ) = 0 g and g ( 1) = a l This model provides welfare enjoyed by every person in the society. Using this model, we can measure the welfare disparity between male and female.

6 B. Paid Work in Labor Market 1. Atkinson s Welfare Function - Equally distributed equivalent level of income - Welfare is measured in terms of money metric x ε ε x = µ ε = money metric Atkinson s welfare = inequality aversion parameter = mean income when inequality aversion parameter is zero A ε ε 1 x µ = = Atkinson s inequality measure

7 2. Relative Gender Disparity Index (RGDI) x ε f = welfare enjoyed by women x ε m = welfare enjoyed by men RGDI = log ( ) ( x log x ) εm εf = occupational segregation + labor market discrimination

8 Average Hours of Work Per Week Gender Vietnam Thailand South Africa Total Black African Male Female Average

9 Per capita wage per hour by educational level: Vietnam Primary Lower secondary Upper secondary Technical/vocational Prof. secondary Junior college diploma Bachelor Masters Doctorate Male Female No degree

10 Per capita wage per hour by educational level: Thailand Less than primary Elementary Lower secondary Upper secondary (general/academic) Upper secondary (vocational) Upper secondary (teacher training) Diploma (academic) Diploma (higher technical education) Diploma (teacher training) University (academic) University (higher technical education) University (teacher training) Male Female No degree

11 Per capita wage per hour by educational level: South Africa Sub A/Grade 1 Sub B/Grade 2 Grade 3/Standard 1 Grade 4/Standard 2 Grade 5/Standard 3 Grade 6/Standard 4 Grade 7/Standard 5 Grade 8/Standard 6/Form 1 Grade 9/Standard 7/Form 2 Grade 10/Standard 8/Form 3 Grade 11/Standard 9/Form 4 Grade 12/Standard 10/Form 5 NTC I NTC II NTC III Diploma Degree Postgraduate degree or diploma Male Female No schooling Grade R/0

12 Per capita wage per hour by ethnic groups: South Africa Ethnic groups Per capita hourly wage Share of population Total Male Female Total Male Female African/Black Colored Indian/Asian White Other Average

13 Atkinson s Inequality Measure Vietnam Thailand South Africa ε = 1 Male Female ε = 2 Male Female Atkinson's inequality measure when aversion parameter = Vietnam Thailand South Africa Male Female

14 Total disparity adjusted by education, experience, regions/areas, & race ε = 0 ε = 1 ε = 2 Vietnam Total disparity Segregation Discrimination Thailand Total disparity Segregation Discrimination South Africa Total disparity Segregation Discrimination

15 ε = 0 Kakwani & Son Decomposition result I: Vietnam Total disparity Segregation Discrimination Education Experience Province & areas All factors ε = 1 Education Experience Province & areas All factors ε = 2 Education Experience Province & areas All factors

16 ε = 0 Kakwani & Son Decomposition result II : Thailand Total disparity Segregation Discrimination Education Experience Province & areas All factors ε = 1 Education Experience Province & areas All factors ε = 2 Education Experience Province & areas All factors

17 Kakwani & Son Decomposition result III : South Africa ε = 0 Total disparity Segregation Discrimination Education Experience Province & areas Race All factors ε = 1 Education Experience Province & areas Race All factors ε = 2 Education Experience Province & areas Race All factors

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