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Trade openness and female-male earnings differentials: Evidence from Indonesia

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  • Maryam Jamielaa

    (Graduate Program in Economics, Faculty of Economics and Business, Universitas Indonesia, Indonesia.)

Abstract

In the past two decades, Indonesia has experienced an increase in total trade and FDI. In the period 2008-2014, there was an increase of FDI volume, which was followed by a widening trend in the female and male earnings gap. This study investigates the impact of trade openness on female-male earnings differentials and how the impact differs across the wage distribution. This thesis used data employment from the National Labor Survey (SAKERNAS) published by Statistics Indonesia and FDI data released by the Investment Coordinating Board (BKPM). Furthermore, after applying the OLS and the Quantile Regression estimation method, it appears that gender wage gap is narrower in low quantile wage distributions than in high quantile distributions. Also, another important finding emerges from the results of provincial income groups, which shows that gender wage differentials are narrower in high-income and middle provinces than in low-income provinces.

Suggested Citation

  • 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.
    • Handle: RePEc:uii:journl:v:10:y:2018:i:1:p:82-92
    DOI: 10.20885/ejem.vol10.iss1.art9
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    More about this item

    Keywords

    Trade Openness; Gender Wage Gap; Quantile Regression;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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