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A cohort analysis of wages in Indonesia

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  • E. Skoufias
  • A. Suryahadi

Abstract

This article uses repeated cross-sectional data for the years 1986 to 1998 to examine how the median and spread in the distribution of wages among workers of different age and gender were affected by the economic growth and contraction in output during this period. It finds that it is mainly the younger cohorts of male and female workers that have reaped the benefits of the growing employment and wages in the formal sector. The growing wage sector has been absorbing many of the young entrants into the labour market but more male workers than female workers. The increases in the median wages of these younger cohorts have been accompanied by a rise in the inequality of earnings. The level as well as the increase in dispersion is also higher for females of younger cohorts than male cohorts. The declines in real wages since the 1997 crisis have been relatively evenly distributed among male and female workers and across different age cohorts, while the impact of the crisis on wage inequality has been mixed.

Suggested Citation

  • E. Skoufias & A. Suryahadi, 2002. "A cohort analysis of wages in Indonesia," Applied Economics, Taylor & Francis Journals, vol. 34(13), pages 1703-1710.
    • Handle: RePEc:taf:applec:v:34:y:2002:i:13:p:1703-1710
    DOI: 10.1080/00036840110118115
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    Cited by:

    1. Djavad Salehi-Isfahani & Marenglen Marku, 2011. "Reversal of Fortunes: The Rise and Fall of Lifetime Earnings of Iranian Men," Economic Development and Cultural Change, University of Chicago Press, vol. 59(4), pages 877-906.
    2. Asep Suryahadi & Sudarno Sumarto & Lant Pritchett, 2003. "Evolution of Poverty During the Crisis in Indonesia," Asian Economic Journal, East Asian Economic Association, vol. 17(3), pages 221-241, September.
    3. Lawrence Dacuycuy, 2007. "On wage density comparisons: bandwidth selectors and test outcomes," Applied Economics Letters, Taylor & Francis Journals, vol. 14(3), pages 203-208.
    4. Parjiono & A.B.M. Rabiul Alam Beg & Richard Monypenny, 2013. "The driving forces of the level and the growth rate of real per capita income in Indonesia," Applied Economics, Taylor & Francis Journals, vol. 45(17), pages 2389-2400, June.

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