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Gender Discrimination in Earnings in Indonesia: A Fuller Picture

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  • Kitae Sohn

Abstract

This article analyses data from the 2007 Indonesia Family Life Survey in order to decompose the gender gap in earnings into explained and unexplained gaps, not only at the mean but also across the entire distribution. Women earned about 30% less than men, in both paid work and self-employment. The explained gap accounts for only about a quarter of the gap in paid work but for about half of the gap in self-employment. When the decomposition is made across the earnings distribution, the total gap decreases with earnings in both paid work and self-employment, and both conditional and unconditional on characteristics. In both employment sectors, the explained gap remains similar across the distribution, and therefore the unexplained gap drives the decrease in the total gap. The unconditional decomposition across the distribution provides great insight into the dynamics that are obscured in results derived from decomposition at the mean.

Suggested Citation

  • Kitae Sohn, 2015. "Gender Discrimination in Earnings in Indonesia: A Fuller Picture," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 51(1), pages 95-121, April.
    • Handle: RePEc:taf:bindes:v:51:y:2015:i:1:p:95-121
    DOI: 10.1080/00074918.2015.1016569
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    References listed on IDEAS

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    1. Goldin, Claudia, 1992. "Understanding the Gender Gap: An Economic History of American Women," OUP Catalogue, Oxford University Press, number 9780195072709.
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    Cited by:

    1. Sohn, Kitae, 2015. "The value of male height in the marriage market," Economics & Human Biology, Elsevier, vol. 18(C), pages 110-124.
    2. Choi, Seonkyung & Li, Huihui & Ogawa, Keiichi, 2023. "Upper secondary vocational education and decent work in Indonesia: A gender comparison," International Journal of Educational Development, Elsevier, vol. 101(C).
    3. Hal Hill, 2020. "Indonesian Living Standards over 50 Years: A Multidimensional Analysis," Asian Economic Journal, East Asian Economic Association, vol. 34(3), pages 249-274, September.
    4. Sari, Virgi & Tiwari, Sailesh, 2024. "The geography of human capital: insights from the subnational human capital index in Indonesia," LSE Research Online Documents on Economics 122167, London School of Economics and Political Science, LSE Library.
    5. Kadir, Kadir & Weni Lidya, Sukma, 2019. "Returns to Education and Wages Distribution in Indonesia: A Comparison across Gender Groups," MPRA Paper 94929, University Library of Munich, Germany, revised 25 Apr 2019.
    6. Md Nazmul Ahsan & Inas Rashad Kelly, 2018. "Earnings Gaps for Conspicuous Characteristics: Evidence from Indonesia," Southern Economic Journal, John Wiley & Sons, vol. 85(1), pages 121-141, July.
    7. Kitae Sohn, 2016. "Risk Incomprehension and Its Economic Consequences," Journal of Development Studies, Taylor & Francis Journals, vol. 52(11), pages 1545-1560, November.
    8. Maryam Jamielaa, 2018. "Trade openness and female-male earnings differentials: Evidence from Indonesia," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 10(1), pages 82-92, April.
    9. Sarah Xue Dong, 2016. "Consistency between Sakernas and the IFLS for Analyses of Indonesia’s Labour Market: A Cross-Validation Exercise," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 52(3), pages 343-378, September.
    10. Illoong Kwon & Kitae Sohn, 2017. "Job dissatisfaction of the self-employed in Indonesia," Small Business Economics, Springer, vol. 49(1), pages 233-249, June.

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