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

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 earnin...

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Main Author: Maryam Jamielaa
Format: Article
Language:English
Published: Universitas Islam Indonesia 2018-03-01
Series:Economic Journal of Emerging Markets
Subjects:
Online Access:http://uiistage.openjournaltheme.com/3310/index.php/JEP/article/view/8850
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author Maryam Jamielaa
author_facet Maryam Jamielaa
author_sort Maryam Jamielaa
collection DOAJ
description 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.
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spelling doaj.art-8780c0fc7bd345a18963a05578cb45482022-12-22T03:46:46ZengUniversitas Islam IndonesiaEconomic Journal of Emerging Markets2086-31282502-180X2018-03-01101Trade openness and female-male earnings differentials: Evidence from IndonesiaMaryam Jamielaa0Graduate Program in Economics, Faculty of Economics and Business, Universitas Indonesia, Jakarta 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. http://uiistage.openjournaltheme.com/3310/index.php/JEP/article/view/8850Trade OpennessGender Wage GapQuantile Regression
spellingShingle Maryam Jamielaa
Trade openness and female-male earnings differentials: Evidence from Indonesia
Economic Journal of Emerging Markets
Trade Openness
Gender Wage Gap
Quantile Regression
title Trade openness and female-male earnings differentials: Evidence from Indonesia
title_full Trade openness and female-male earnings differentials: Evidence from Indonesia
title_fullStr Trade openness and female-male earnings differentials: Evidence from Indonesia
title_full_unstemmed Trade openness and female-male earnings differentials: Evidence from Indonesia
title_short Trade openness and female-male earnings differentials: Evidence from Indonesia
title_sort trade openness and female male earnings differentials evidence from indonesia
topic Trade Openness
Gender Wage Gap
Quantile Regression
url http://uiistage.openjournaltheme.com/3310/index.php/JEP/article/view/8850
work_keys_str_mv AT maryamjamielaa tradeopennessandfemalemaleearningsdifferentialsevidencefromindonesia