ABSTRACT
The gender wage gap is described as phenomenon such that women with same capacity, productivity with male workers are paid or promoted less. The reasons for such discrimination are the cultural stereotypes, personal biases, and labor cost saving. Recent statistics shows that Azerbaijan is also among the countries which suffer from this phenomenon where it ranked 100th out of 156 countries in The Global Gender Gap Index (GGGI). Yet, State Statistics Committee of the Republic of Azerbaijan has positive views in this topic, which claims that the economic growth in the country is followed by the increase in the part of women in country s labor force. In this regard, extensive empirical analysis developed to test these ideas where the difference between average wages of female and male workers regressed on GDP (Gross Domestic Product) per capita. Additionally, literacy ratio of males to females and Gini coefficient were used as control variables. The results confirmed the hypothesis by showing a negative relationship between the gender wage gap and economic development so, we believe that the results of the study will be useful for the implementation of correct government policies, which will be aimed at reducing the gender pay gap in the future.

Keywords: gender wage gap, gross domestics product, per capita, Gini coefficient, literacy rate

JEL Classification: J7