The Sources of Wage Growth in a Developing Country

Ioana Marinescu and Margaret Triyana ()
Additional contact information
Margaret Triyana: Nanyang Technological University, Singapore

No 9066, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: What are the sources of wage growth in developing countries? In the US, general labor market experience is the key source of wage growth, with job seniority playing a smaller role. By contrast, in Indonesia, the 10-year return to seniority is 24 to 29%, which is higher than the return to experience. Furthermore, we estimate a 35% return to ten years of tenure in the formal sector, with no significant return to tenure in the informal sector. The difference in the sources of wage growth in Indonesia versus the US may be a reflection of Indonesia's lower level of development.

Keywords: experience; formality; informality; wages; tenure (search for similar items in EconPapers)
JEL-codes: J31 O1 (search for similar items in EconPapers)
Pages: 62 pages
Date: 2015-05
New Economics Papers: this item is included in nep-iue, nep-lma, nep-ltv and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://docs.iza.org/dp9066.pdf (application/pdf)

Related works:
Journal Article: The sources of wage growth in a developing country (2016)
Journal Article: The sources of wage growth in a developing country (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp9066

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().