Can Minimum Wages Close the Gender Wage Gap?

Evidence From Indonesia

Mary Hallward-Driemeier, Bob Rijkers, Andrew Waxman

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

Using manufacturing plant-level census data, this paper demonstrates that minimum wage increases in Indonesia reduced gender wage gaps among production workers, with heterogeneous impacts by level of education and position of the firm in the wage distribution. Paradoxically, educated women appear to have benefitted the most, particularly in the lower half of the firm average earnings distribution. By contrast, women who did not complete primary education did not benefit on average, and even lost ground in the upper end of the earnings distribution. Minimum wage increases were thus associated with exacerbated gender pay gaps among the least educated, and reduced gender gaps among the best educated production workers. Unconditional quantile regression analysis attests to wage compression and lighthouse effects. Changes in relative employment prospects were limited.

Original languageEnglish (US)
JournalReview of Income and Wealth
DOIs
StateAccepted/In press - 2015
Externally publishedYes

Fingerprint

Indonesia
Workers
Minimum wage
Earnings distribution
Gender wage gap
Quantile regression
Regression analysis
Gender pay gap
Census data
Wage compression
Gender gap
Wage distribution
Primary education
Manufacturing
Education

Keywords

  • Gender
  • Indonesia
  • Manufacturing
  • Minimum wages
  • Wage gaps

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Can Minimum Wages Close the Gender Wage Gap? Evidence From Indonesia. / Hallward-Driemeier, Mary; Rijkers, Bob; Waxman, Andrew.

In: Review of Income and Wealth, 2015.

Research output: Contribution to journalArticle

Hallward-Driemeier, Mary ; Rijkers, Bob ; Waxman, Andrew. / Can Minimum Wages Close the Gender Wage Gap? Evidence From Indonesia. In: Review of Income and Wealth. 2015.
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