Abstract
This paper empirically tried to analyze the effects of education on the gender wage gap in Indonesia and to examine whether globalization could alter such a relationship. We modified a decomposition method for the panel dataset that corresponds to the National Socio-Economic Survey from 1996 to 2016. Overall, we found that schooling could significantly influence the salary discrepancy. We also proved that globalization did matter in explaining the relationship between the educational attainment and the salary gap. Here, it could widen the difference in the remuneration. Based on the results, strengthening the gender-responsive budget at the national government level might be one of the solutions. Basically, it actually started with a new awareness of the budget that was not genderneutral. Thus, the positioning of women in education and decision-making process is very crucial for the future of development.
Highlights
Wage or remuneration is motivation of employees
Education is a significant determinant of gender wage
We have tried to investigate whether education can affect gender wage gap
Summary
Wage or remuneration is motivation of employees. gender wage parity protects human right, and liberates labor force and optimizes economic resource distribution. Numerous countries in the world suffer the aftermath of gender wage gap, the developing and transition ones. This gap stems from both the traditional menfirst stereotypes and the ideology which restrain women to access to education and thereby their remuneration (Digdowise, 2018). The effect of globalization on the gender wage gap is clearly complex, positive or negative, with the contradictory ways of influence (Potrafke & Ursprung, 2011). These arguments raise interesting investigations whether education can close the difference in remuneration and how the impact of education changes without and with globalization. The panel data is extracted through the National Socio-Economic Survey (Survei Sosial Ekonomi Nasional – SUSENAS) from 1996 to 2016
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