Gender Earning Difference between Public and Private Sector of Pakistan

Abstract

The study is an attempt to observe the earning differences between male and female of the public and private sector in Pakistan by employing nationally representative Pakistan Labor Force Survey (PLFS) data for the period 2006 - 2021. In order to perform a detailed comparative analysis of the earning difference, the private sector is further segregated into formal and informal sectors. Empirical evidences acquired by employing Pseudo panel technique, ascertain that earning differences in the public sector are low compared to the private sector. Public sector is performing a fair role in reducing gender earning difference in Pakistan. It is concluded that the female employees of informal sector are more exploited compared to the formal sector in both public and private sector because of the female vulnerability. Migration from rural to urban areas contributes significantly in reducing wage differential across genders.