The Impact of Labor Market Inequality on the Income of Medium Industry Sector¡¯s Workers in the Palembang City-Indonesia

This study attempts to investigate the impact of labor market Inequality on the income of medium industry sector¡¯s worker in the Palembang City-Indonesia. Using 380 respondents which covers male and female workers ranging from the age of 15 to the age of 64, this study employs a proportional stratified random sampling in determining the sampling technique. This study employs a survey method using in-depth investigation to explore all the facts acquired about the labor market inequality in the medium industry sector. The sample area includes 16 districts in the City of Palembang. The level of education, the job¡¯s capability and the working experience are some of those factors investigated in this study. The factor of labor market inequality is focused on the wage and employment. The result reveals that apart from the level of education, the job¡¯s capability and working experience have a significant impact on the existence of labor market inequality in the medium industry sector. It can be concluded that higher level of education is inessential for the medium industry sector in Palembang City-Indonesia, and this is inline with the notion that the medium industry sector merely requires both working¡¯s capability and spesified technical skills in supporting higher productivity level. The inequality occurs in the wage and the job assigned. Furthermore, the higher the existence of labor market inequality, the lower the income acquired by the employees.