Abstract
This study analysed the income disparity among the high-risk job of inter-city inter-province bus drivers in South Sumatera. The high number of road accident showed that inter-city inter-province autobus drivers’ job is a high-risk job. High-risk jobs should be compensated with high salary. In this study, primary and secondary data were analyzed. Saturated sampling technique was used involving 71 intra-Sumatera bus drivers and 125 Sumatera-Java bus drivers to participate in this study. The result of analysis of Blinder-Oaxaca decomposition that there is income disparity among the bus drivers which is caused by the three endowments that were facilities, environment, and compensation. There were two factors that divides the income disparity into two categories; value of factors causing the disparity at 38.993 and unexplainable factors at 2.728. The total of the income disparity was -41.159.
Highlights
Risky job is a relatively least wanted jobs since it is less interesting and its characteristics cause income disparities
This study employed the decomposition method proposed by Blinder and Oaxaca (1973) which theoretically divides income disparity into two types which are the income disparity caused by different endowment and income disparity caused by unexplainable factors
The result of the analysis showed that there was income disparity among the drivers of those two across-cities across-provinces bus routes in South Sumatera
Summary
Risky job is a relatively least wanted jobs since it is less interesting and its characteristics cause income disparities. Safe jobs are jobs that provide high social status, flexible work durations, indoor, and is located in comfortable and safe environment which is less risky. Risky jobs are the ones with shabby work environment, monotonous tasks, low social status, and located in unsafe places with high risks (Nurlina, 2012). The high salary is able to increase workers’ interests which causes income disparities at the same time. Across-cities across-provinces bus drivers (AKAP) are workers of risky jobs. This study aimed at understanding the influence of human capital, job risks, and the compensation system of workers’ income as well as the income disparities among the intercity inter-province autobus drivers of Java-Sumatera route
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