ANALYSIS FACTORS THAT INFLUENCE WAGE DISPARITY BETWEEN FEMALE WORKERS IN URBAN AND RURAL AREAS IN SOUTH SUMATERA

Lamazi (), Syamsurijal A.k (), NurlinaTarmizi () and Tatang A.M Sariman ()
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Lamazi: Sriwijaya University, Indonesia
Syamsurijal A.k: Sriwijaya University, Indonesia
NurlinaTarmizi: Sriwijaya University, Indonesia
Tatang A.M Sariman: Sriwijaya University, Indonesia

Eurasian Journal of Economics and Finance, 2016, vol. 4, issue 3, 54-63

Abstract: This study aims to analyze the factors that influence wage disparity between working women (female workers) in urban and rural areas in South Sumatera in 2013 using cross-sectional data from Susenas 2013. Methods used in this study are wage equation of Mincer (1994) and wage decomposition model of Blinder-Oaxaca. The results show that average wage disparity between working women in urban and rural areas are 34.93%. This disparity is caused by endowment (independent) variables, namely, education, age, working hours (jam kerja), non-agricultural sector (non-pertanian), marital status (menikah), and the presence of children under the age of five (balita), by 11.82%. The rest of 88.18% are explained by other variables outside this study. Endownment variables such as senior high school (SMA) education, higher education (pendidikantinggi) and working hours (jam kerja) are also found to be the cause of an increase in wage disparity of working women in urban and rural areas.

Keywords: Women Wage Disparity; Endowment Factors; Blinder-Oaxaca; Women Workers Journal: Eurasian Journal of Economics and Finance (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (1)

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