Gender Wage Gap and Income Inequality in Kyrgyzstan

This study investigates gender wage inequality in the Kyrgyz Republic and evaluates how recent wage reforms affected the gender wage gap. In 2018–2019, the Kyrgyz government introduced wage reforms in the public sector, particularly for teachers, medical workers, and social service employees—sectors where women represent the majority of the workforce. These reforms created expectations that the gender wage gap might decrease, similar to the effects observed after earlier wage adjustments in 2011. However, the extent to which the reforms influenced gender wage inequality remains unclear. Using data from the Life in Kyrgyzstan (LiK) longitudinal household survey for the period 2016–2019, this paper examines the determinants of wage inequality and measures the magnitude of the gender wage gap. The analysis applies several econometric methods, including Ordinary Least Squares (OLS) regression, the Heckman (1979) sample selection correction model, and the Oaxaca–Blinder (1973) decomposition technique. These methods allow the wage gap to be separated into components explained by observable characteristics such as education, work experience, and regional factors, and an unexplained component often associated with labor market discrimination. The results show that although differences in human capital explain part of the wage gap, a substantial unexplained component persists, suggesting the continued presence of structural inequalities in the labor market. The findings provide important insights for policymakers seeking to design effective labor market policies aimed at reducing gender-based wage inequality in Kyrgyzstan.