The sources of wage growth in a developing country

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

IZA Journal of Labor & Development, 2016, vol. 5, issue 1, 1-43

Abstract: Abstract What are the sources of wage growth in developing countries? In the USA, 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 28 %, which is higher than the return to experience. Furthermore, we estimate a 35 % return to 10 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 USA may be a reflection of Indonesia’s lower level of development. JEL codes: J3, O1

Keywords: Human capital; Informal labor market; Returns to tenure (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://link.springer.com/10.1186/s40175-016-0047-9 Abstract (text/html)

Related works:
Journal Article: The sources of wage growth in a developing country (2016)
Working Paper: The Sources of Wage Growth in a Developing Country (2015)
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:spr:izaldv:v:5:y:2016:i:1:d:10.1186_s40175-016-0047-9

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40175

DOI: 10.1186/s40175-016-0047-9

Access Statistics for this article

IZA Journal of Labor & Development is currently edited by David Lam, Hartmut Lehmann and Jackline Wahba

More articles in IZA Journal of Labor & Development from Springer, Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().