Effect of Trade Liberalisation on Wage Inequality in Indonesia

IF 0.5 Q4 ECONOMICS
Watekhi Watekhi, N. Nachrowi, D. Hartono, Arie Damayanti
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引用次数: 2

Abstract

This study attempts to find out the influence of trade liberalisation on wage inequality in Indonesia. A two-stage estimation approach is used. Using the national labour force survey dataset, the study estimates industry wage premium and industry-specific skill premium in the first stage conditional on individual worker characteristics. In the second stage, the study regresses industry wage premium and industry-specific skill premium on tariff as a measure of trade liberalisation, respectively. It is concluded that trade liberalisation significantly contributes to increasing wage inequality. This contribution occurred through changes in industry wage premium but not industry-specific skill premium.
贸易自由化对印尼工资不平等的影响
本研究试图找出贸易自由化对印尼工资不平等的影响。使用两阶段估计方法。该研究利用全国劳动力调查数据集,根据工人个人特征,估计了第一阶段的行业工资溢价和行业特定技能溢价。在第二阶段,该研究分别回归了作为贸易自由化衡量标准的行业工资溢价和行业特定技能溢价。得出的结论是,贸易自由化大大加剧了工资不平等。这种贡献是通过行业工资溢价的变化而产生的,而不是行业特定技能溢价的变化。
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来源期刊
CiteScore
1.30
自引率
25.00%
发文量
9
期刊介绍: The primary purpose of the journal is to promote publications of original research related to the Malaysian economy. It is also designed to serve as an outlet for studies on the South-east Asian countries and the Asian region. The journal also considers high-quality works related to other regions that provide relevant policy lessons to Malaysia. The journal is receptive to papers in all areas of economics. We encourage specifically contributions on all range of economic topics of an applied or policy nature. At the same time, submissions of methodological or theoretical studies with results that are of practical use are welcome. Works that are interdisciplinary will be considered provided that they contain substantial economic contents.
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