Page 83 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.80, # 1, 2023, pp. 83-93

THE CORRELATION BETWEEN GENDER PAY GAP AND
GDP GROWTH IN AZERBAIJAN ECONOMY

ZAHRA HUSEYNOVA

Azerbaijan State University of Economics (UNEC)
E-mail: [email protected]
Received: February 10; accepted June 05, 2023; published online June 26, 2023

ABSTRACT
The gender wage gap is described as phenomenon such that women with same
capacity, productivity with male workers are paid or promoted less. The reasons for
such discrimination are the cultural stereotypes, personal biases, and labor cost saving.
Recent statistics shows that Azerbaijan is also among the countries which suffer from
this phenomenon where it ranked 100th out of 156 countries in The Global Gender
Gap Index (GGGI). Yet, State Statistics Committee of the Republic of Azerbaijan has
positive views in this topic, which claims that the economic growth in the country is
followed by the increase in the part of women in country’s labor force. In this regard,
extensive empirical analysis developed to test these ideas where the difference
between average wages of female and male workers regressed on GDP (Gross
Domestic Product) per capita. Additionally, literacy ratio of males to females and Gini
coefficient were used as control variables. The results confirmed the hypothesis by
showing a negative relationship between the gender wage gap and economic
development so, we believe that the results of the study will be useful for the
implementation of correct government policies, which will be aimed at reducing the
gender pay gap in the future.

Keywords: gender wage gap, gross domestics product, per capita, Gini coefficient,
literacy rate

JEL Classification: J7

INTRODUCTION
“Freedom cannot be achieved unless women have been emancipated from all kinds of
oppression” (Mandela, 2004).
As Nelson Mandela emphasized women have been faced oppression all over the
centuries. The history shows that the role of a woman in the society has been described
th
as a servant for her husband and children. However, starting from 20 century we
observe rise in women empowerment. In this period women up-risings reached in high
levels such as feminism movements in 1950’s, Mothers of the Plaza de Mayo in
1970’s and so on.

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