ABSTRACT

Gender gaps in schooling have narrowed over the last few decades across the globe. Less is known about gender differences in cognitive skills because the evidence, especially on adults in low- and middle-income countries, is not as readily available as data on school enrolment rates have been. This chapter examines the relative importance of schooling and cognitive skills on the type of employment and earnings of men and women, the adults between the ages of 24 and 55 in the 13 STEP countries. The estimates confirm, as many studies have found, that women typically earn less than men do, on average, and that their schooling levels and cognitive skills are not rewarded equally. The analysis indicates that the unequal returns by gender derive partly from women and men being in different types of employment.