The Impact of Labor Market Inequality on the Income of Medium Industry Sector’s Workers in the Palembang City-Indonesia

Abstract

<p>This study attempts to investigate the impact of labor market Inequality on the income of<br />medium industry sector’s worker in the Palembang City-Indonesia. Using 380 respondents<br />which covers male and female workers ranging from the age of 15 to the age of 64, this study<br />employs a proportional stratified random sampling in determining the sampling technique.<br />This study employs a survey method using in-depth investigation to explore all the facts<br />acquired about the labor market inequality in the medium industry sector. The sample area<br />includes 16 districts in the City of Palembang. The level of education, the job’s capability and<br />the working experience are some of those factors investigated in this study. The factor of<br />labor market inequality is focused on the wage and employment. The result reveals that apart<br />from the level of education, the job’s capability and working experience have a significant<br />impact on the existence of labor market inequality in the medium industry sector. It can be<br />concluded that higher level of education is inessential for the medium industry sector in<br />Palembang City-Indonesia, and this is inline with the notion that the medium industry sector<br />merely requires both working’s capability and spesified technical skills in supporting higher<br />productivity level. The inequality occurs in the wage and the job assigned. Furthermore, the<br />higher the existence of labor market inequality, the lower the income acquired by the<br />employees.</p>