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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.
Highlights
Considered as a second class society, the role of women in economic development is often in doubtfully as they are considered as inferior, unworthy and unable to work
The inability of women to fulfill the basic needs laid to degraded quality of human resources
The gender wage gap, gender pay gap, or gender income inequality, is the differences in wages between women and men at the same level of productivity [2]. This idea was supported by Stojanka Dakić whose stated that gender wage gap is usually a result of breaking the principle of equal pay for work of equal value because the same work operated by different genders should have the same level of responsibility, expertise, experience and readiness in the intellectual and physical sense [3]
Summary
Considered as a second class society, the role of women in economic development is often in doubtfully as they are considered as inferior, unworthy and unable to work. The impact of gender discrimination perspectives is human resource accumulation for women labor was about to idle. The inability of women to fulfill the basic needs laid to degraded quality of human resources. This indirectly resulted in the wage earned by woman is lower than that of man, well known as gender wage gap. The low wages received by the female workforce causes the competence of female workers to be seen as lower than men. If this continues, the role of women in economic development becomes meaningless. The conclusion is that the gender wage gap has attributed to the lack of economic development
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