IDEAS home Printed from https://ideas.repec.org/a/uii/journl/v11y2019i2p161-172.html
   My bibliography  Save this article

Investigating wage bargaining power, wage inequality and industrial structure in Indonesia

Author

Listed:
  • Sofyan Syahnur
  • Marwan Marwan
  • Said Munzir
  • Hizir Hizir

    (Department of Economics Development, Faculty of Economics and Business, Universitas Syiah Kuala Darussalam, Banda Aceh, Indonesia and PRKPEP/CEPPEDA Unsyiah, Indonesia.
    Department of Mathematics, Faculty of Mathematics and Natural Science, Universitas Syiah Kuala Darussalam, Banda Aceh, Indonesia
    Department of Mathematics, Faculty of Mathematics and Natural Science, Universitas Syiah Kuala Darussalam, Banda Aceh, Indonesia
    Department of Mathematics, Faculty of Mathematics and Natural Science, Universitas Syiah Kuala Darussalam, Banda Aceh, Indonesia)

Abstract

This study investigates the bargaining power of labor over wages and the wage inequality among industries based on the industrial structure in Indonesia. It uses a panel data model and secondary data from 2008-2015. This study argues that wage inequality really matters among the industries and tends to enlarge among them despite the existence of the bargaining power of labor over wage. Findings/Originality: The labor bargaining power over wage in Large and Medium Industries still has greater probability to be increased compared to that in Small and Micro Industries. It implies that the wage inequality still matters in the labor market, particularly in the three industrial groups, and tends to enlarge among them. Government has to take care seriously on the industrial structure with regard to wage bargaining power of labor and particularly wage inequality. Moreover, the government should promote fair wage levels between industries and labor of each industrial classification, particularly in developing countries.

Suggested Citation

  • Sofyan Syahnur & Marwan Marwan & Said Munzir & Hizir Hizir, 2019. "Investigating wage bargaining power, wage inequality and industrial structure in Indonesia," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 11(2), pages 161-172, October.
    • Handle: RePEc:uii:journl:v:11:y:2019:i:2:p:161-172
    DOI: 10.20885/ejem.vol11.iss2.art4
    as

    Download full text from publisher

    File URL: https://journal.uii.ac.id/JEP/article/download/12793/9733
    Download Restriction: no
    File URL: https://journal.uii.ac.id/JEP/article/view/12793/9733
    Download Restriction: no
    File URL: https://libkey.io/10.20885/ejem.vol11.iss2.art4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Wage Bargaining Power; Wage Inequality of Industries; Panel Data Model;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uii:journl:v:11:y:2019:i:2:p:161-172. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ana Yuliani (email available below). General contact details of provider: https://journal.uii.ac.id/JEP/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.