Is There Any Discrimination Towards Young Women in Indonesia’s Labor Market?

Abstract

Gender equality is one of the most important issues in the labor market.\xa0 In this paper, we want to observe the level of gender equality in\xa0 Indonesia’s labor market. One of the ways to do this is to estimate\xa0 the relationship between gender and salary. We obtained a sample\xa0 size of 1404 white-collar Indonesian employees, which consists\xa0 of several variables such as salary, gender, age, education level,\xa0 university, experience, job role, managerial role, and company size. We\xa0 estimated the relationship using Ordinary Least Squares and Blinder Oaxaca Decomposition, and conclude that in general, gender has no\xa0 significant impact on salary after holding all other variables constant.\xa0 However, when we subset the data set to only young workers, we\xa0 found evidence of salary-based discrimination towards young women\xa0 in Indonesia’s labor market. Keywords : gender equality, gender pay-gap, Indonesia, labor economics (1)\xa0 Faculty of Economics and Business, Atma Jaya Catholic University, Jakarta, Indonesia * Corresponding Author https://doi.org/10.21632/irjbs.12.1.69-86