Document Type

Article

Publication Date

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.

Volume

1

Issue

1

Comments

This Article is brought to you for free and open access by UNM Digital Repository. It has been accepted for inclusion in Development Journal of the South by an authorized editor of UNM Digital Repository. For more information, please contact disc@unm.edu.

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