New Evidence on the Gender Wage Gap in Indonesia

Kiyoshi Taniguchi and Alika Tuwo ()
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Alika Tuwo: World Bank, Jakarta Country Office

No 404, ADB Economics Working Paper Series from Asian Development Bank

Abstract: Indonesia has been experiencing impressive economic growth and rapid urbanization in recent years. However, urbanization could affect income inequality through people’s movement from rural to urban areas. Using the 2010 National Labor Force Survey (Sakernas) in Indonesia, this study examines how monthly wages are distributed between male and female workers and tests whether a wage gap exists between them. Regression results reveal that urbanization tends to benefit male workers more favorably, in terms of monthly wages, than female workers. The wage gap tends to be wider among younger workers, particularly among those who are underemployed and severely underemployed. It is also greater among public sector workers than those in the private sector. Gender wage gap in Indonesia is mainly due to gender discrimination. An act to equalize opportunity and wages among workers, especially in the public sector, is proposed.

Keywords: gender; wage distribution; gender wage gap; Indonesia; urbanization; inclusive growth; migration (search for similar items in EconPapers)
JEL-codes: E24 J16 J31 R23 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2014-10-28
New Economics Papers: this item is included in nep-lab, nep-ltv, nep-mac and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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