Document Type
Article
Version Deposited
Published Version
Publication Date
8-2015
Publication Title
Development Journal of the South
Abstract
This study uses pooled cross-section data from two large surveys of firms in Nepal to determine wage inequality. Applying an inequality decomposition procedure, the estimated wage inequality is then attributed to various factors that affect the labor demand function in the country. We find that firm size and exposure of firms to international trade are among the factors showing statistical significance in affecting wage disparity in Nepal. To the extent wage inequality can be attributed to the factors considered in this study, firm size alone accounts for 55 to 84 percent of the inequality depending on the size indicators such as employment or sales. On the other hand, foreign exposure, unlike strongly suggested in the literature, has played much less of a role.
Recommended Citation
Devkota, Satis, Kapri, Kul, & Upadhyay, Mukti (2015). Firm Size, Foreign Exposure and Inequality in Wage: A Decomposition Analysis. Development Journal of the South, 1(1), 82-93.
Comments
Development Journal of the South (DJS) is an open-access peer-reviewed multidisciplinary journal published by the Nepal Study Center at the University of New Mexico. https://ejournals.unm.edu/index.php/djs/index