PublicDisclosureAuthorized PublicDisclosureAuthorized PolicyResearchWorkingPaper10509 Female-WorkerRepresentationEffect GenderPayVariationintheKuwaitiCivilService MohamedIhsanAjwadSimonBilo HaNguyenEbtesamAlAnsariLamaAlHumaidanFalehAlRashidi SocialProtectionandJobsGlobalPractice&MiddleEastandNorthAfricaRegion June2023 PolicyResearchWorkingPaper10509 Abstract KuwaitiwomenworkinginKuwait’scivilserviceearn,onaverage,18percentlessthanKuwaitimen.UsingauniquedatasetofallKuwaitinationalsworkinginKuwait’scivilservice,thispaperanalyzestherelationshipbetweenwages,gender,andtherelativedominanceofwomeninoccupa-tionsandworkplaces.Themainfindingisthatanimportantportionoftheassociationbetweengenderandwagesisexplainednotbyhumancapitalbutbyoccupationalandworkplacesegregationofmenandwomen.Occupations withahigherratioofwomentomentendtohavelowerwagesforbothgenderswhencomparedtoworkersinoccu-pationswithalowerratioofwomentomen.Thisfindingisespeciallytrueforwomen.Workplaceswithahigherfemale-to-maleratioexhibitlowermalewagesbutslightlyhigherfemalewagesthanworkplaceswithlowerfemale-to-maleworkplaceratios.Thepapercallsthislatternovelfindingthefemale-workerrepresentationeffect. ThispaperisaproductoftheSocialProtectionandJobsGlobalPracticeandtheMiddleEastandNorthAfricaRegion.ItispartofalargereffortbytheWorldBanktoprovideopenaccesstoitsresearchandmakeacontributiontodevelopmentpolicydiscussionsaroundtheworld.PolicyResearchWorkingPapersarealsopostedontheWebathttp://www.worldbank.org/prwp.Theauthorsmaybecontactedatmajwad@worldbank.org. ThePolicyResearchWorkingPaperSeriesdisseminatesthefindingsofworkinprogresstoencouragetheexchangeofideasaboutdevelopmentissues.Anobjectiveoftheseriesistogetthefindingsoutquickly,evenifthepresentationsarelessthanfullypolished.Thepaperscarrythenamesoftheauthorsandshouldbecitedaccordingly.Thefindings,interpretations,andconclusionsexpressedinthispaperareentirelythoseoftheauthors.TheydonotnecessarilyrepresenttheviewsoftheInternationalBankforReconstructionandDevelopment/WorldBankanditsaffiliatedorganizations,orthoseoftheExecutiveDirectorsoftheWorldBankorthegovernmentstheyrepresent. ProducedbytheResearchSupportTeam Female-WorkerRepresentationEffect:GenderPayVariationintheKuwaitiCivilService MohamedIhsanAjwad(WorldBank,Washington,DC,USA)SimonBilo(WorldBank,Washington,DC,USA) HaNguyen(InternationalMonetaryFund,Washington,DC,USA) EbtesamAlAnsari(PublicAuthorityforAppliedEducationandTraining,KuwaitCity,Kuwait)LamaAlHumaidan(PublicAuthorityforAppliedEducationandTraining,KuwaitCity,Kuwait)FalehAlRashidi(PublicAuthorityforAppliedEducationandTraining,KuwaitCity,Kuwait)* Keywords:genderwagegap,civilservants’wages,Kuwait,MENA JELCodes:J15,J24,J31,J42,J45,J61,J71 *Theauthorsmaybecontactedatmajwad@worldbank.org,sbilo@worldbank.org,hnguyen7@imf.org,im.alansari@paaet.edu.kw,lt.alhumaidan@paaet.edu.kw,andfm.alrashidi@paaet.edu.kw.Thispaper,itsanalysis,anditsconclusionssolelyrepresenttheviewsoftheauthorsandnotnecessarilytheirrespectiveorganizations.TheauthorswouldliketoacknowledgethefinancialsupportreceivedfromtheGenderandLaborMarketsResearchProgramsundertheaegisoftheMiddleEastandNorthAfricaChiefEconomist’sOffice(MNACE),aswellascommentsreceivedfromMNACEcolleagues.TheauthorsaregratefultoDr.KhaledMahdi,IssamA.Abousleiman,GhassanN.Alkhoja,andAnushBezhanyanfortheirsupport.Inaddition,theauthorsaregratefultoSAnukriti,RobertaV.Gatti,DanielLederman,IsmailRadwan,FatmaAhmadAlIbrahim,andNellyElmallakhforhelpfulcommentsandvaluablesuggestions.Anyremainingerrorsaretheresponsibilityoftheauthors. Female-WorkerRepresentationEffect:GenderPayVariationintheKuwaitiCivilService 1.Introduction Earningsdifferencesbetweenmenandwomenareobservedinalmosteverycountry.Forexample,intheUS,thewomen/menearningsratiowasroughly60percentformanyyears,thoughitbegantorisesharplyinthe1980sand“by2014,womenfull-timeworkersearnedabout79percentofwhatmendidonanannualbasis”(BlauandKahn,2017).Avastliteraturedocumentsthegenderpaydifferencearoundtheworld.Forexample,AltonjiandBlank(1999)reportthatwomen’swageshaveincreasedrelativetomen.Definedasthedifferencebetweenmedianearningsofmenandwomenrelativetomedianearningsofmen,theOECDfindsthatthegenderwagegapisaslowas1.2percentinBelgiumand2.6percentinBulgaria,andashighas31.1percentintheRepublicofKoreaand24.3percentinIsrael(OECD2023). BlauandKahn(2017),usingPanelStudyofIncomeDynamicsdata,discussthestylizedfactsregardingthegenderwagedifferenceintheUnitedStates.Whilehumancapitalvariablesusedtoexplainasignificantshareofthegenderwagedifference,morerecentestimatesshowthattheydonot.Anincreasinglyimportantdeterminantofthegenderwagedifferenceistheoccupationandindustryinwhichanindividualworks.Importantly,menandwomenoftenworkindifferentoccupationsandsectors,withcorrespondingvariationingenderpaydifferences(BlauandKahn2017;Kunze2018).TheeffectofoccupationalgendersegregationongenderpaydifferencesisdemonstratedbyKiddandGoninon(2000),Hegewishetal.(2010),GrönlundandMagnusson(2013),andCortesandPan(2018).Worksusingemployer–employeematcheddatasetssuchas