Determinants of the Labor Wages Disparity and their Problems in Makassar City, Indonesia

Abstract

This study is aimed at analyzing wage disparity based on socio-demographic characteristics, education, work experience, and types of work, as well as the use of income in the labor households’ economy. The survey method was used for the research with a proportional sampling of 300 respondents. in Makassar City. Data analysis was performed by multiple linear regressions. The results of this study indicated a gender-based and education-based wage disparity. However, this study did not reveal a disparity in terms of marital status. Work experience was not a significant factor for determining wages. The lowest-paying jobs were for market employees, followed by dock workers, construction workers, and shop employees, and with public transit employees receiving the highest wages. Simultaneously, the findings of this study revealed relative disparities in labor costs in Makassar City. The consumption pattern of labor households was also dominated by expenditure for food consumption (65.51%), which indicates that labor households were relatively poor. However, they tried to save about 32.56% of their total household income each month.