Gender wage gap: Myth or reality.

One of the most complicated issues that a researcher can deal with is to try to detect or uncover the presence of discrimination in both for-profit and not-for-profit (public) organizations. The equal pay for equal work principal is hardly observed among different groups of workers. In a country like Lebanon, this discrimination issue could take different forms. Gender and religion are among the most common bases for discrimination practices. Working with aggregate time series data fails to capture prejudice or unequal employment and promotion decisions. It is really difficult to control for all different variables. Using cross-sectional data is equally deficient since what you observe at one point in time does not indicate the path that could involve severe past unfair practices. That is, having 40% female participation in top management in firm X and 20% female participation in firm B should not necessarily mean that firm X has better employment practices.

Can markets afford unfounded social stereotype claims as a basis for wage discrimination against minority groups? Would labor markets price such statements at the entry level only? Is there a built in stabilizer that would self-correct unjustified and probably unethical practices? Is it sufficient to see good participation of females in the top management of an enterprise to conclude that such a firm is abiding by the equal pay for equal work principal? Or is it the result of extreme discrimination against women that made the female population inside the firm hold more human capital that in turn helped this group take over? What would be the reaction of females who were subject to discrimination upon arrival in the labor market?

This paper will concentrate on identifying different forms of discrimination practices against minority groups, in particular, females in the workplace. Structured interviews will be conducted with both directors of human resources departments and employees, in both public and for-profit firms in Lebanon. Qualitative analysis will be used to identify specific methods followed to discriminate against females at different stages of their careers. Multiple regression analysis, utilizing a sample of 1800 individuals, will be used to test the research hypothesis that if discrimination exists, it is expected to be more apparent in public as compared to profit-seeking firms.