Labor Market & Employment Policies

Gender Wage Gap: the Comparison Analysis between Korea and Vietnam


Abstract

This paper employs Juhn, Murphy, Pierce (JMP) decomposition using two nationally-representative data in Korea and Vietnam in two different years to examine the country-specific change in wage gap and inter-country difference in wage gap. Conclusions are (i)wage gap is much higher in Korea than it is in Vietnam substantially being due to greater gender disadvantage of female workers in Korea, (ii) wage structure difference explains little to inter- country wage gap differential, (iii) sign of discrimination resulting in wage inequality is captured at upper part of wage distribution in Korea (glass ceiling effect) but at the lower points of wage structure in Vietnam (sticky floor effect), (iv) wage gaps increase in both countries by small amounts between 2004 and 2006, (v) education change contribute positively to the decrease of wage gap, but largely are offset by deterioration in gender discrimination that keeps the wage gap expanding in both countries, and (vi) occupation/industry gender segregation and wage compressing plays the same role in affecting the change wage gap in two countries, the former increases the gap where as the later reduces the gap.

※ This paper is written within the framework of research exchange program of the Korea Labor Institute (KLI) in 2009, which aims at building the research network in Asia region. Special thanks go to Bae Kijoon (KLI) for his helps with the EAP data and Dr. Kim Juyoung (KLI) for helpful discussions during the research. I would like to thank all research fellows in KLI for useful discussions during my stay. I am also grateful for the continuous support/assistance from other KLI staffs.
※ Gian Thanh Cong, Institute of Labor Science and Social Affairs (ILSSA), Vietnam.