Page 91 - Azerbaijan State University of Economics

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

RESULTS
The key issue of this paper is the role of gender pay disparity in economic development.
The first step in our study is to analyze the properties of time series variables to avoid a
false setback. The results of the OLS regression analysis provide preliminary support for
the hypothesis. All ratios had a sign predicted by the literature. From our result (Table 7)
you can see the effect of our independent and control variables to our dependent variable
- wage ratio of male to female. The regression gives us the conclusion that GDP (Gross
Domestic Production) per capita and Gini Index for Azerbaijan variables are statistically
significant. However, the variable, literacy ratio of males to females is statistically
insignificant. More openly, if you change Gini by one, we expect wage ratio to change by
0.103. Moreover, if we increase GDP by one percent, we can see wage ratio to decrease
by 0.02 units. About the literacy, if we increase it by 1 point, wage ratio will decrease by
1. 61. We see that literacy and GDP is negatively correlated and Gini is positively. The
coefficient in front of real GDP is negative and highly significant as expected as GDP
increased wage gap will decrease. Furthermore, our R squared result is quite well. 90
percent R square means that our control variables can explain our independent variables
by 90 percent, which show the right choice of independent variable for this regression
model (see Table 7 below).

Table 7: Results of regression analysis

Source: The results are obtained through the author’s analysis

CONCLUSION
To summarize, when we looked at the literature, we saw that there is lack of the effective
government policy to decrease the gender wage gap. Thus, as was mentioned in the
beginning of the paper the aim of the research paper was to find out the effect of economic
growth on gender pay gap in Azerbaijan. From the conducted research it is concluded that
the hypothesis of negative relationship between the economic growth, namely GDP of
Azerbaijan and gender pay gap, namely wage ratio of males to females, turned to be true.

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