Islands through the glass ceiling? Evidence of gender wage gaps in Madagascar and Mauritius

Using matched employer-employee data collected in Mauritius and Madagascar in 2005, we add new evidence on the magnitude of the gender wage gap and on the relevance of the glass ceiling hypothesis recently observed in developed countries. We focus more closely on the role of firm characteristics and job segregation across firms as potential factors explaining the gender wage gap. While the magnitude of the adjusted gender gap is almost insignificant in Madagascar and quite high in Mauritius, our results show that accounting for firm heterogeneity in the analysis is important for both islands. We highlight that these firm effects are the result of gender segregation across firms, i.e. the existence of high paying firms for men and low paying firms for women. In addition, there is no compelling evidence of a glass ceiling phenomenon in both islands. This comparative study then suggests that there is a high heterogeneity in Africa with respect to the situation of women in the formal labor market.