The Analysis of Vertical Mismatch and Manufacturing Labor Wage by Using Cramer's V Method

As the leading sector of the national economy through its contribution, the manufacturing industry sector in Indonesia was precisely filled with the dominance of vertical mismatch or mismatch between education levels and types of work based on the 2015 National Labor Force Survey (Sakernas). The neg...

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Main Author: Hartato Hartato
Format: Article
Language:English
Published: Universitas Teuku Umar 2020-04-01
Series:Jurnal Public Policy
Subjects:
Online Access:http://jurnal.utu.ac.id/jppolicy/article/view/1564
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author Hartato Hartato
author_facet Hartato Hartato
author_sort Hartato Hartato
collection DOAJ
description As the leading sector of the national economy through its contribution, the manufacturing industry sector in Indonesia was precisely filled with the dominance of vertical mismatch or mismatch between education levels and types of work based on the 2015 National Labor Force Survey (Sakernas). The negative effects of vertical mismatch have an impact on the low wages earned by labor because investment at the education level is not maximally used when working. This paper aims to study the tendency of vertical mismatch to labor wages in the manufacturing industry sector by training, education level, region, & generation using descriptive analysis methods (crosstabulation & graphics) and Cramer's V to see the correlation with August 2015 Sakernas data. The results of research with the total sample of 1,259 workers shows that vertical mismatch is significantly related to labor wage with the tendency of workers who are overqualified to face low wages. In addition, overqualified workers occur in all regions of Indonesia with the characteristics of younger generations and Diploma IV / S1 graduates. The conclusion of this paper is that industrial labors in Indonesia are still classified as overqualified and experience low wages. The efforts that need to be done are improving the skills of workers through training so as to have a positive effect on mismatch workers to obtain higher wages.
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spelling doaj.art-1732ddcc441342cd80db725fb5a076c52022-12-21T19:46:23ZengUniversitas Teuku UmarJurnal Public Policy2477-57382502-05282020-04-01611610.35308/jpp.v6i1.15641384The Analysis of Vertical Mismatch and Manufacturing Labor Wage by Using Cramer's V MethodHartato Hartato0Master in Economics of Population and Labor, Faculty of Economics and Business, University of IndonesiaAs the leading sector of the national economy through its contribution, the manufacturing industry sector in Indonesia was precisely filled with the dominance of vertical mismatch or mismatch between education levels and types of work based on the 2015 National Labor Force Survey (Sakernas). The negative effects of vertical mismatch have an impact on the low wages earned by labor because investment at the education level is not maximally used when working. This paper aims to study the tendency of vertical mismatch to labor wages in the manufacturing industry sector by training, education level, region, & generation using descriptive analysis methods (crosstabulation & graphics) and Cramer's V to see the correlation with August 2015 Sakernas data. The results of research with the total sample of 1,259 workers shows that vertical mismatch is significantly related to labor wage with the tendency of workers who are overqualified to face low wages. In addition, overqualified workers occur in all regions of Indonesia with the characteristics of younger generations and Diploma IV / S1 graduates. The conclusion of this paper is that industrial labors in Indonesia are still classified as overqualified and experience low wages. The efforts that need to be done are improving the skills of workers through training so as to have a positive effect on mismatch workers to obtain higher wages.http://jurnal.utu.ac.id/jppolicy/article/view/1564incomevertical mismatchoverqualifiedtraininggenerationcramer’s v
spellingShingle Hartato Hartato
The Analysis of Vertical Mismatch and Manufacturing Labor Wage by Using Cramer's V Method
Jurnal Public Policy
income
vertical mismatch
overqualified
training
generation
cramer’s v
title The Analysis of Vertical Mismatch and Manufacturing Labor Wage by Using Cramer's V Method
title_full The Analysis of Vertical Mismatch and Manufacturing Labor Wage by Using Cramer's V Method
title_fullStr The Analysis of Vertical Mismatch and Manufacturing Labor Wage by Using Cramer's V Method
title_full_unstemmed The Analysis of Vertical Mismatch and Manufacturing Labor Wage by Using Cramer's V Method
title_short The Analysis of Vertical Mismatch and Manufacturing Labor Wage by Using Cramer's V Method
title_sort analysis of vertical mismatch and manufacturing labor wage by using cramer s v method
topic income
vertical mismatch
overqualified
training
generation
cramer’s v
url http://jurnal.utu.ac.id/jppolicy/article/view/1564
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