Wage differential in Indonesian manufacturing industries

This study ty to examine validity of efficiency wage models in the labor surplus economy. Indonesian manufacturing sector as a core in fact pay higher wages than the outside-informal sector. The rents sharing scheme found lower than that of developed countries, especially shown by smaller elasticity...

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Main Author: Bambang Setiaja
Format: Article
Published: Penerbit Universiti Kebangsaan Malaysia 2002
Online Access:http://journalarticle.ukm.my/1375/
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author Bambang Setiaja,
author_facet Bambang Setiaja,
author_sort Bambang Setiaja,
building UKM Institutional Repository
collection Online Access
description This study ty to examine validity of efficiency wage models in the labor surplus economy. Indonesian manufacturing sector as a core in fact pay higher wages than the outside-informal sector. The rents sharing scheme found lower than that of developed countries, especially shown by smaller elasticity of wages with respect to value added, capital intensity, concentration ratio, foreign ownership, and size. Meanwhile export orientation industry have not positive impact on wages, and female fraction shows quadratic form. The last finding shows increasing part of wages after female workers become majority. Meanwhile, production-non production groups have different wage determinants pattern. The different impact of size, export, and female fraction variables can be concluded as if the industry’s policy results in wage discount, it tends to be allocated by cutting the production worker wages only. It mean that, the wage gap of managerial or white collar group between high and low paying industries tend to narrow
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institution Universiti Kebangasaan Malaysia
institution_category Local University
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publishDate 2002
publisher Penerbit Universiti Kebangsaan Malaysia
recordtype eprints
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spelling ukm-13752011-08-16T01:54:46Z http://journalarticle.ukm.my/1375/ Wage differential in Indonesian manufacturing industries Bambang Setiaja, This study ty to examine validity of efficiency wage models in the labor surplus economy. Indonesian manufacturing sector as a core in fact pay higher wages than the outside-informal sector. The rents sharing scheme found lower than that of developed countries, especially shown by smaller elasticity of wages with respect to value added, capital intensity, concentration ratio, foreign ownership, and size. Meanwhile export orientation industry have not positive impact on wages, and female fraction shows quadratic form. The last finding shows increasing part of wages after female workers become majority. Meanwhile, production-non production groups have different wage determinants pattern. The different impact of size, export, and female fraction variables can be concluded as if the industry’s policy results in wage discount, it tends to be allocated by cutting the production worker wages only. It mean that, the wage gap of managerial or white collar group between high and low paying industries tend to narrow Penerbit Universiti Kebangsaan Malaysia 2002 Article PeerReviewed Bambang Setiaja, (2002) Wage differential in Indonesian manufacturing industries. Jurnal Ekonomi Malaysia, 36 . ISSN 0127-1962 http://www.ukm.my/~penerbit
spellingShingle Bambang Setiaja,
Wage differential in Indonesian manufacturing industries
title Wage differential in Indonesian manufacturing industries
title_full Wage differential in Indonesian manufacturing industries
title_fullStr Wage differential in Indonesian manufacturing industries
title_full_unstemmed Wage differential in Indonesian manufacturing industries
title_short Wage differential in Indonesian manufacturing industries
title_sort wage differential in indonesian manufacturing industries
url http://journalarticle.ukm.my/1375/
http://journalarticle.ukm.my/1375/