Is There Any Discrimination Towards Young Women in Indonesia’s Labor Market?

Karnadi, Erwin Bramana

International Research Journal of Business Studies
Vol. 12 No. 1 (2019): April - July 2019

Gender equality is one of the most important issue in the labor market. In this paper, we want to observe the level of gender equality in Indonesia’s labor market. One of the ways to do this is to estimate the relationship between gender and salary. We obtained a sample size of 1404 white-collar Indonesian employees, which consists of several variables such as salary, gender, age, education level, university, experience, job role, managerial role and company size. We estimated the relationship using Ordinary Least Squares and Blinder-Oaxaca Decomposition, and conclude that in general, gender has no significant impact on salary after holding all other variables constant. However, when we subset the data set to only young workers, we found evidence of salary-based discrimination towards young women in Indonesia’s labor market.