Can Minimum Wages Close the Gender Wage Gap? : Evidence from Indonesia

Using manufacturing plant-level census data, this paper demonstrates that minimum wage increases in Indonesia reduced gender wage gaps among production workers, with heterogeneous impacts by level of education and position of the firm in the wage d...

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Main Authors:	Hallward-Driemeier, Mary, Rijkers, Bob, Waxman, Andrew
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2015
Subjects:	JOBS GENDER IMPACT EMPLOYMENT INDUSTRIAL RELATIONS WAGE EFFECT WAGE GAP PRODUCTION EARNINGS REGRESSIONS PLANT’ PRODUCTIVITY WAGE COMPRESSION SKILLED WORKERS INFORMAL SECTOR MINIMUM WAGE FOREIGN-OWNED FIRMS INCOME OPPORTUNITIES FOR WOMEN WHITE COLLAR WORKERS FOREIGN OWNERSHIP FIRM PRODUCTIVITY WAGE DISCRIMINATION EMPLOYMENT OPPORTUNITIES EMPLOYMENT EFFECTS INFORMATION LABOR FORCE DISCRIMINATION POLITICAL ECONOMY JOB EFFECTS WAGE INCREASES LABOR ECONOMICS WAGE LEVEL FIRM SIZE EMPLOYMENT OPPORTUNITIES FOR WOMEN REAL WAGES GENDER WAGE GAPS LOCAL LABOR MARKET CONDITIONS WAGE GROWTH ECONOMIC ANALYSIS PAID WORKERS MALE WORKERS WORK EXPERIENCE PRODUCTION PROCESS LABOR MARKET TOTAL FACTOR PRODUCTIVITY WAGE BILL GENDER GAP TRAINING DEVELOPMENT ECONOMICS EDUCATIONAL ATTAINMENT ON-THE-JOB TRAINING FIRM LEVEL GENDER MAINSTREAMING BARGAINING POWER WORKER PREVIOUS STUDIES LABOR PRODUCTIVITY PRODUCTIVITY WAGE DISPERSION MARKETS ORGANIZATIONS JOB TRAINING LABOR PRIMARY SCHOOL WAGE INCREASE MINIMUM WAGES WAGE GAINS UNEMPLOYMENT AVERAGE WAGES LABOR MARKET DISCRIMINATION PRODUCTIVITY GROWTH HUMAN CAPITAL GENDER GAPS FORMAL SECTOR WORKERS SEX DIFFERENCES WORKERS LABOR MARKET CONDITIONS WAGES POLICIES WHO OWNERSHIP STRUCTURE PRODUCTION WORKERS GENDER DIFFERENCES TOTAL WAGE WAGE INEQUALITY VALUE AVERAGE WAGE GENDER WAGE DATA CREATIVE DESTRUCTION OCCUPATIONS FEMALE WORKERS OCCUPATION STD LABOR MARKET INSTITUTIONS PRODUCTIVE FIRMS LABOR MARKET OUTCOMES EMPLOYMENT GROWTH LABOR RELATIONS EARNING PRIOR WORK EXPERIENCE ECONOMICS WAGE POLICY LABOR ORGANIZATION INVESTMENT HUMAN RESOURCES PRODUCTION WORKER CRISES BARGAINING SUPPLY EMPLOYEE WAGE NEGOTIATIONS LAW PROPORTION OF WOMEN WAGE EFFECTS CONSUMER PRICE INDEX LOCAL LABOR MARKET GENDER COMPOSITION UNSKILLED WORKERS PRIMARY EDUCATION WOMEN WAGE DISTRIBUTION LABOUR LABOR MARKETS ECONOMIC SHOCKS OUTCOMES EMPLOYMENT IMPACTS EMPLOYMENT PROSPECTS WAGE EMPLOYMENT PRODUCTION PROCESSES INEQUALITY EMPLOYEES
Online Access:	http://documents.worldbank.org/curated/en/2015/07/24775844/can-minimum-wages-close-gender-wage-gap-evidence-indonesia http://hdl.handle.net/10986/22449

id	okr-10986-22449
recordtype	oai_dc
spelling	okr-10986-224492021-04-23T14:04:08Z Can Minimum Wages Close the Gender Wage Gap? : Evidence from Indonesia Hallward-Driemeier, Mary Rijkers, Bob Waxman, Andrew JOBS GENDER IMPACT EMPLOYMENT INDUSTRIAL RELATIONS WAGE EFFECT WAGE GAP PRODUCTION EARNINGS REGRESSIONS PLANT’ PRODUCTIVITY WAGE COMPRESSION SKILLED WORKERS INFORMAL SECTOR MINIMUM WAGE FOREIGN-OWNED FIRMS INCOME OPPORTUNITIES FOR WOMEN WHITE COLLAR WORKERS FOREIGN OWNERSHIP FIRM PRODUCTIVITY WAGE DISCRIMINATION EMPLOYMENT OPPORTUNITIES EMPLOYMENT EFFECTS INFORMATION LABOR FORCE DISCRIMINATION POLITICAL ECONOMY JOB EFFECTS WAGE INCREASES LABOR ECONOMICS WAGE LEVEL FIRM SIZE EMPLOYMENT OPPORTUNITIES FOR WOMEN REAL WAGES GENDER WAGE GAPS LOCAL LABOR MARKET CONDITIONS WAGE GROWTH ECONOMIC ANALYSIS PAID WORKERS MALE WORKERS WORK EXPERIENCE PRODUCTION PROCESS LABOR MARKET TOTAL FACTOR PRODUCTIVITY WAGE BILL GENDER GAP TRAINING DEVELOPMENT ECONOMICS EDUCATIONAL ATTAINMENT ON-THE-JOB TRAINING FIRM LEVEL GENDER MAINSTREAMING BARGAINING POWER WORKER PREVIOUS STUDIES LABOR PRODUCTIVITY PRODUCTIVITY WAGE DISPERSION MARKETS ORGANIZATIONS JOB TRAINING LABOR PRIMARY SCHOOL WAGE INCREASE MINIMUM WAGES WAGE GAINS UNEMPLOYMENT AVERAGE WAGES LABOR MARKET DISCRIMINATION PRODUCTIVITY GROWTH HUMAN CAPITAL GENDER GAPS FORMAL SECTOR WORKERS SEX DIFFERENCES WORKERS LABOR MARKET CONDITIONS WAGES POLICIES WHO OWNERSHIP STRUCTURE PRODUCTION WORKERS GENDER DIFFERENCES TOTAL WAGE WAGE INEQUALITY VALUE AVERAGE WAGE GENDER WAGE DATA CREATIVE DESTRUCTION OCCUPATIONS FEMALE WORKERS OCCUPATION STD LABOR MARKET INSTITUTIONS PRODUCTIVE FIRMS LABOR MARKET OUTCOMES EMPLOYMENT GROWTH LABOR RELATIONS EARNING PRIOR WORK EXPERIENCE ECONOMICS WAGE POLICY LABOR ORGANIZATION INVESTMENT HUMAN RESOURCES PRODUCTION WORKER CRISES BARGAINING SUPPLY EMPLOYEE WAGE NEGOTIATIONS LAW PROPORTION OF WOMEN WAGE EFFECTS CONSUMER PRICE INDEX LOCAL LABOR MARKET GENDER COMPOSITION UNSKILLED WORKERS PRIMARY EDUCATION WOMEN WAGE DISTRIBUTION LABOUR LABOR MARKETS ECONOMIC SHOCKS OUTCOMES EMPLOYMENT IMPACTS EMPLOYMENT PROSPECTS WAGE EMPLOYMENT PRODUCTION PROCESSES INEQUALITY EMPLOYEES Using manufacturing plant-level census data, this paper demonstrates that minimum wage increases in Indonesia reduced gender wage gaps among production workers, with heterogeneous impacts by level of education and position of the firm in the wage distribution. Paradoxically, educated women appear to have benefitted the most, particularly in the lower half of the firm average earnings distribution. By contrast, women who did not complete primary education did not benefit on average, and even lost ground in the upper end of the earnings distribution. Minimum wage increases were thus associated with exacerbated gender pay gaps among the least educated, and reduced gender gaps among the best educated production workers. Unconditional quantile regression analysis attests to wage compression and lighthouse effects. Changes in relative employment prospects were limited. 2015-08-17T19:06:14Z 2015-08-17T19:06:14Z 2015-07 Working Paper http://documents.worldbank.org/curated/en/2015/07/24775844/can-minimum-wages-close-gender-wage-gap-evidence-indonesia http://hdl.handle.net/10986/22449 English en_US Policy Research Working Paper;No. 7364 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific Indonesia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	JOBS GENDER IMPACT EMPLOYMENT INDUSTRIAL RELATIONS WAGE EFFECT WAGE GAP PRODUCTION EARNINGS REGRESSIONS PLANT’ PRODUCTIVITY WAGE COMPRESSION SKILLED WORKERS INFORMAL SECTOR MINIMUM WAGE FOREIGN-OWNED FIRMS INCOME OPPORTUNITIES FOR WOMEN WHITE COLLAR WORKERS FOREIGN OWNERSHIP FIRM PRODUCTIVITY WAGE DISCRIMINATION EMPLOYMENT OPPORTUNITIES EMPLOYMENT EFFECTS INFORMATION LABOR FORCE DISCRIMINATION POLITICAL ECONOMY JOB EFFECTS WAGE INCREASES LABOR ECONOMICS WAGE LEVEL FIRM SIZE EMPLOYMENT OPPORTUNITIES FOR WOMEN REAL WAGES GENDER WAGE GAPS LOCAL LABOR MARKET CONDITIONS WAGE GROWTH ECONOMIC ANALYSIS PAID WORKERS MALE WORKERS WORK EXPERIENCE PRODUCTION PROCESS LABOR MARKET TOTAL FACTOR PRODUCTIVITY WAGE BILL GENDER GAP TRAINING DEVELOPMENT ECONOMICS EDUCATIONAL ATTAINMENT ON-THE-JOB TRAINING FIRM LEVEL GENDER MAINSTREAMING BARGAINING POWER WORKER PREVIOUS STUDIES LABOR PRODUCTIVITY PRODUCTIVITY WAGE DISPERSION MARKETS ORGANIZATIONS JOB TRAINING LABOR PRIMARY SCHOOL WAGE INCREASE MINIMUM WAGES WAGE GAINS UNEMPLOYMENT AVERAGE WAGES LABOR MARKET DISCRIMINATION PRODUCTIVITY GROWTH HUMAN CAPITAL GENDER GAPS FORMAL SECTOR WORKERS SEX DIFFERENCES WORKERS LABOR MARKET CONDITIONS WAGES POLICIES WHO OWNERSHIP STRUCTURE PRODUCTION WORKERS GENDER DIFFERENCES TOTAL WAGE WAGE INEQUALITY VALUE AVERAGE WAGE GENDER WAGE DATA CREATIVE DESTRUCTION OCCUPATIONS FEMALE WORKERS OCCUPATION STD LABOR MARKET INSTITUTIONS PRODUCTIVE FIRMS LABOR MARKET OUTCOMES EMPLOYMENT GROWTH LABOR RELATIONS EARNING PRIOR WORK EXPERIENCE ECONOMICS WAGE POLICY LABOR ORGANIZATION INVESTMENT HUMAN RESOURCES PRODUCTION WORKER CRISES BARGAINING SUPPLY EMPLOYEE WAGE NEGOTIATIONS LAW PROPORTION OF WOMEN WAGE EFFECTS CONSUMER PRICE INDEX LOCAL LABOR MARKET GENDER COMPOSITION UNSKILLED WORKERS PRIMARY EDUCATION WOMEN WAGE DISTRIBUTION LABOUR LABOR MARKETS ECONOMIC SHOCKS OUTCOMES EMPLOYMENT IMPACTS EMPLOYMENT PROSPECTS WAGE EMPLOYMENT PRODUCTION PROCESSES INEQUALITY EMPLOYEES
spellingShingle	JOBS GENDER IMPACT EMPLOYMENT INDUSTRIAL RELATIONS WAGE EFFECT WAGE GAP PRODUCTION EARNINGS REGRESSIONS PLANT’ PRODUCTIVITY WAGE COMPRESSION SKILLED WORKERS INFORMAL SECTOR MINIMUM WAGE FOREIGN-OWNED FIRMS INCOME OPPORTUNITIES FOR WOMEN WHITE COLLAR WORKERS FOREIGN OWNERSHIP FIRM PRODUCTIVITY WAGE DISCRIMINATION EMPLOYMENT OPPORTUNITIES EMPLOYMENT EFFECTS INFORMATION LABOR FORCE DISCRIMINATION POLITICAL ECONOMY JOB EFFECTS WAGE INCREASES LABOR ECONOMICS WAGE LEVEL FIRM SIZE EMPLOYMENT OPPORTUNITIES FOR WOMEN REAL WAGES GENDER WAGE GAPS LOCAL LABOR MARKET CONDITIONS WAGE GROWTH ECONOMIC ANALYSIS PAID WORKERS MALE WORKERS WORK EXPERIENCE PRODUCTION PROCESS LABOR MARKET TOTAL FACTOR PRODUCTIVITY WAGE BILL GENDER GAP TRAINING DEVELOPMENT ECONOMICS EDUCATIONAL ATTAINMENT ON-THE-JOB TRAINING FIRM LEVEL GENDER MAINSTREAMING BARGAINING POWER WORKER PREVIOUS STUDIES LABOR PRODUCTIVITY PRODUCTIVITY WAGE DISPERSION MARKETS ORGANIZATIONS JOB TRAINING LABOR PRIMARY SCHOOL WAGE INCREASE MINIMUM WAGES WAGE GAINS UNEMPLOYMENT AVERAGE WAGES LABOR MARKET DISCRIMINATION PRODUCTIVITY GROWTH HUMAN CAPITAL GENDER GAPS FORMAL SECTOR WORKERS SEX DIFFERENCES WORKERS LABOR MARKET CONDITIONS WAGES POLICIES WHO OWNERSHIP STRUCTURE PRODUCTION WORKERS GENDER DIFFERENCES TOTAL WAGE WAGE INEQUALITY VALUE AVERAGE WAGE GENDER WAGE DATA CREATIVE DESTRUCTION OCCUPATIONS FEMALE WORKERS OCCUPATION STD LABOR MARKET INSTITUTIONS PRODUCTIVE FIRMS LABOR MARKET OUTCOMES EMPLOYMENT GROWTH LABOR RELATIONS EARNING PRIOR WORK EXPERIENCE ECONOMICS WAGE POLICY LABOR ORGANIZATION INVESTMENT HUMAN RESOURCES PRODUCTION WORKER CRISES BARGAINING SUPPLY EMPLOYEE WAGE NEGOTIATIONS LAW PROPORTION OF WOMEN WAGE EFFECTS CONSUMER PRICE INDEX LOCAL LABOR MARKET GENDER COMPOSITION UNSKILLED WORKERS PRIMARY EDUCATION WOMEN WAGE DISTRIBUTION LABOUR LABOR MARKETS ECONOMIC SHOCKS OUTCOMES EMPLOYMENT IMPACTS EMPLOYMENT PROSPECTS WAGE EMPLOYMENT PRODUCTION PROCESSES INEQUALITY EMPLOYEES Hallward-Driemeier, Mary Rijkers, Bob Waxman, Andrew Can Minimum Wages Close the Gender Wage Gap? : Evidence from Indonesia
geographic_facet	East Asia and Pacific Indonesia
relation	Policy Research Working Paper;No. 7364
description	Using manufacturing plant-level census data, this paper demonstrates that minimum wage increases in Indonesia reduced gender wage gaps among production workers, with heterogeneous impacts by level of education and position of the firm in the wage distribution. Paradoxically, educated women appear to have benefitted the most, particularly in the lower half of the firm average earnings distribution. By contrast, women who did not complete primary education did not benefit on average, and even lost ground in the upper end of the earnings distribution. Minimum wage increases were thus associated with exacerbated gender pay gaps among the least educated, and reduced gender gaps among the best educated production workers. Unconditional quantile regression analysis attests to wage compression and lighthouse effects. Changes in relative employment prospects were limited.
format	Working Paper
author	Hallward-Driemeier, Mary Rijkers, Bob Waxman, Andrew
author_facet	Hallward-Driemeier, Mary Rijkers, Bob Waxman, Andrew
author_sort	Hallward-Driemeier, Mary
title	Can Minimum Wages Close the Gender Wage Gap? : Evidence from Indonesia
title_short	Can Minimum Wages Close the Gender Wage Gap? : Evidence from Indonesia
title_full	Can Minimum Wages Close the Gender Wage Gap? : Evidence from Indonesia
title_fullStr	Can Minimum Wages Close the Gender Wage Gap? : Evidence from Indonesia
title_full_unstemmed	Can Minimum Wages Close the Gender Wage Gap? : Evidence from Indonesia
title_sort	can minimum wages close the gender wage gap? : evidence from indonesia
publisher	World Bank, Washington, DC
publishDate	2015
url	http://documents.worldbank.org/curated/en/2015/07/24775844/can-minimum-wages-close-gender-wage-gap-evidence-indonesia http://hdl.handle.net/10986/22449
_version_	1764451105403568128

Can Minimum Wages Close the Gender Wage Gap? : Evidence from Indonesia

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