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The Male-Female Wage Differentials in Indonesia

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Abstract

While it is a general fact that women earn less than men do, the source of the wage difference is not well understood. This paper presents the results of two empirical studies on the issue of female-male wage differentials: the econometric analysis on the determination of wages and the measurement of gender-based wage discrimination in the labour market. The results suggest that wage discrimination exists, but its contribution to the female-male wage differentials is declining. Comparing the actual and potential wages, it is also shown that women already in the labour market are `selected' individuals who are lucky enough to experience less discrimination.

Suggested Citation

  • Tubagus Feridhanusetyawan & Haryo Aswicahyono & Ari A. Perdana, 2001. "The Male-Female Wage Differentials in Indonesia," CSIS Economics Working Paper Series WPE059, Centre for Strategic and International Studies, Jakarta, Indonesia.
    • Handle: RePEc:sis:wpecon:wpe059
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    File URL: http://www.csis.or.id/working_paper_file/21/wpe059.pdf
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    More about this item

    Keywords

    Indonesia; gender; wage differentials; labour economics;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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