Gender Wage Gap and Education: Case in Indonesia’s Labor Market

Abstract

The perspective gender wage gap weakens the labor market and deteriorates women’s life quality. Women not only receive lower salaries than men, but also have lower employment rate in many countries due to discrimination. The aims of this study was to analyze gender wage gap by using the 2008-2016 panel data from 34 province in Indonesia. This study used derivatives canonical model in CES production function form to identify gender wage gap and elasticity substitution to observe the ability of female worker substitution of male labor in two group level education. The result of the regression panel consistently indicate that the gender wage gap exists in Indonesia.

Keywords

• gender wage gap
• education
• elasticity substitution