Wage and Labor Union in Manufacturing Sector
Pipit Pitriyan and
Adiatma Siregar ()
No 201203, Working Papers in Economics and Development Studies (WoPEDS) from Department of Economics, Padjadjaran University
The presence of Labor Unions is expected to provide a higher bargaining power for its members so that the rights of workers can be better acknowledged. In Indonesia, presently, the role of unions is more highlighted in the determination of the minimum wage. This study aims to estimate the the role of labor union on wage determination of Indonesia’s labor intensive manufacturing sector and whether wage differentials occurs among labor union member/non-member of Indonesia’s labor intensive manufacturing sector. Using the SAKERNAS 2007 data, the wage equation concludes that being a labor union member, is associated with higher wage payment received and wage differential between union and union members occurs. Meanwhile, Oaxaca Blinder Decomposition results show us that the wage differential between union and non-union is not negligible, particularly in automotive sector.
Keywords: Wage; labor union; manufacturing (search for similar items in EconPapers)
JEL-codes: J3 J5 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab and nep-sea
Date: 2012-08, Revised 2012-08
References: View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
http://ceds.feb.unpad.ac.id/wopeds/201203.pdf First version, 2012 (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:unp:wpaper:201203
Access Statistics for this paper
More papers in Working Papers in Economics and Development Studies (WoPEDS) from Department of Economics, Padjadjaran University Contact information at EDIRC.
Series data maintained by Arief Anshory Yusuf ().