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Indonesia Council Open Conference 2025
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Gender Segregation and Gender Wage Gap in Indonesian Labor Market

Individual Paper

Individual Paper

11:00 am

09 July 2025

Forum 1 (Melbourne Connect)

Session 4: Gender Inequalities in the Labour Market and Workplace

One Conference streams

Inequality and inclusion

Submission Description

The gender wage gap reflects income inequality between men and women. In Indonesia, men earn an average monthly wage of 3.23 million rupiah, 25% higher than women’s 2.42 million rupiah. This disparity affects resource access and limits women's opportunities due to wage constraints and societal roles, perpetuating stereotypes and prioritizing men’s societal positions. This study examines gender segregation and wage differentials in Indonesia, focusing on the roles of education and occupation in shaping these disparities. Using the Indonesian Labor Force Survey (Sakernas) from 2019 to 2024, we employ Mincerian wage regressions, Heckman selection with instrumental variables to address selection bias, and Neumark decomposition to analyze wage distribution. To our knowledge, this is the first study linking educational segregation to gender wage disparities in Indonesia, offering new insights into how segregation influences wage differentials. Findings aim to inform policies addressing wage inequality and promoting gender equity.

Presenters

Presenters

Individual Paper Presenters

Yohanes Andika Tjitrajaya - Parahyangan Catholic University , Regina Gracia Alexander - Parahyangan Catholic University , Rikardiani Rikardiani - Parahyangan Catholic University