2016
DOI: 10.1186/s40175-016-0047-9
|View full text |Cite
|
Sign up to set email alerts
|

The sources of wage growth in a developing country

Abstract: What are the sources of wage growth in developing countries? In the USA, general labor market experience is the key source of wage growth, with job seniority playing a smaller role. By contrast, in Indonesia, the 10-year return to seniority is 24 to 28 %, which is higher than the return to experience. Furthermore, we estimate a 35 % return to 10 years of tenure in the formal sector, with no significant return to tenure in the informal sector. The difference in the sources of wage growth in Indonesia versus the… Show more

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...
1
1

Citation Types

0
2
0

Year Published

2018
2018
2022
2022

Publication Types

Select...
3
1

Relationship

1
3

Authors

Journals

citations
Cited by 4 publications
(2 citation statements)
references
References 19 publications
0
2
0
Order By: Relevance
“…The protective effects of urban residence and wealth confirm and build upon the findings from other studies from Indonesia [ 22 , 36 ] and suggest that the government and partners make greater investments in social protection and poverty eradication. Poor households may see child marriage as economically beneficial in the short-term, but it does not improve the economic status of the household over the long-term or provide financial security for the future, potentially due to the lost financial capital of married girls and women not working [ 37 ]. Indeed, Indonesian women are less likely to have ever worked for pay and women work fewer hours than men [ 38 ].…”
Section: Discussionmentioning
confidence: 99%
“…The protective effects of urban residence and wealth confirm and build upon the findings from other studies from Indonesia [ 22 , 36 ] and suggest that the government and partners make greater investments in social protection and poverty eradication. Poor households may see child marriage as economically beneficial in the short-term, but it does not improve the economic status of the household over the long-term or provide financial security for the future, potentially due to the lost financial capital of married girls and women not working [ 37 ]. Indeed, Indonesian women are less likely to have ever worked for pay and women work fewer hours than men [ 38 ].…”
Section: Discussionmentioning
confidence: 99%
“…We study this channel in the context of our framework. To do so, we calibrate the counterfactual separation rate to match an average job tenure in Indonesia equal to 3.3 years, as documented by Marinescu and Triyana (2016), see Table 1. We compare baseline and counterfactual outcomes in Table 13, column 3.…”
Section: E Alternative Mechanismsmentioning
confidence: 99%