Influences on the gender wage gap of Trinidad and Tobago. An economic concept or a social construct?
| Date | 11 May 2015 |
| Pages | 140-151 |
| Published date | 11 May 2015 |
| DOI | https://doi.org/10.1108/WJEMSD-06-2014-0014 |
| Author | Reshma Mahabir,Dindial Ramrattan |
| Subject Matter | Strategy,Business ethics,Sustainability |
Influences on the gender wage
gap of Trinidad and Tobago
An economic concept or a social construct?
Reshma Mahabir and Dindial Ramrattan
Department of Research and Policy, Central Bank of Trinidad and Tobago,
Port-of-Spain, Trinidad and Tobago
Abstract
Purpose –The purpose of this paper is to examine the presence of a gender wage gap in Trinidad and
Tobago and its possible influences.
Design/methodology/approach –Investigation of the issue utilised data from the 2008/2009
Household Budget Survey. A combination of linear regression and Oaxaca-Blinder decomposition
analysis permits segregation of wage differences into explained and unexplained.
Findings –At the aggregate level, there is a significant difference between male and female wages.
Investigation showed that the demographics with the highest levels of discrimination were in the age
groups 35-44, income levels $3,000-$5,999 and private sector employment vs public sector.
Originality/value –The results of this research can serve as a useful tool for more gender-sensitive
employment policies in Trinidad and Tobago, and possibly the wider Caribbean region.
Keywords Economics, Sustainable development
Paper type Research paper
Introduction
In recent times, Trinidad and Tobago performed relatively well in the global indices
measuring disparity between female and male in the areas of health, empowerment
and economic activity. In all, two main rankings considered by policy makers are the
Gender Inequality Index and the Global Gender Gap. The Gender Inequality Index
looks at reproductive health, empowerment and economic activity. In the latest ranking
(2012), Trinidad and Tobago was positioned 50 out of 148 countries. The Global Gender
Gap examines the gender gap on the areas of health (life expectancy, etc.), access to
education, economic participation (salaries, job type and seniority) and political
engagement. Trinidad and Tobago ranks 36 out 136 countries in the 2013 report. While
there are many positive sentiments emanating from these reports, there is still the
perception that in Trinidad and Tobago a significant differential exists in the wages
earned by women vs men due to discrimination. This paper seeks to investigate
the veracity of this perception using the traditional tools of the literature, namely, the
Mincerian human wage capital equations and the Oaxaca-Blinder decomposition.
Notably, as a signatory to the UN Convention on the Elimination of All Forms of
Discrimination against Women as well as other conventions and protocols, the
government has moved over the years to eliminate legislation that was discriminatory
against women in the workforce. In addition, the institution and subsequent
amendments of the Minimum Wage Act does not allow for discrimination in the
remuneration of men and women. Further, in Trinidad and Tobago, the government
World Journal of
Entrepreneurship, Management
and Sustainable Development
Vol. 11 No. 2, 2015
pp. 140-151
©Emerald Group Publishing Limited
2042-5961
DOI 10.1108/WJEMSD-06-2014-0014
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/2042-5961.htm
The authors are Economists in the Research and Policy Department of the Central Bank of
Trinidad and Tobago. The views expressed are those of the authors and not necessarily those of
the Central Bank.
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WJEMSD
11,2
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