Can Minimum Wages Close the Gender Wage Gap? : Evidence From Indonesia

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...

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Main Authors:	Hallward-Driemeier, Mary, Rijkers, Bob, Waxman, Andrew
Format:	Journal Article
Language:	en_US
Published:	Wiley 2017
Subjects:	WAGE GAPS MINIMUM WAGE MANUFACTURING GENDER GAP
Online Access:	http://hdl.handle.net/10986/26638

id	okr-10986-26638
recordtype	oai_dc
spelling	okr-10986-266382021-04-23T14:04:37Z Can Minimum Wages Close the Gender Wage Gap? : Evidence From Indonesia Hallward-Driemeier, Mary Rijkers, Bob Waxman, Andrew WAGE GAPS MINIMUM WAGE MANUFACTURING GENDER GAP 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. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions. http://olabout.wiley.com/WileyCDA/Section/id-820227.html 2017-05-16T15:43:08Z 2017-05-16T15:43:08Z 2015-11-18 Journal Article Review of Income and Wealth 1475-4991 http://hdl.handle.net/10986/26638 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Wiley Publications & Research :: Journal Article Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	WAGE GAPS MINIMUM WAGE MANUFACTURING GENDER GAP
spellingShingle	WAGE GAPS MINIMUM WAGE MANUFACTURING GENDER GAP Hallward-Driemeier, Mary Rijkers, Bob Waxman, Andrew Can Minimum Wages Close the Gender Wage Gap? : Evidence From Indonesia
description	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. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions. http://olabout.wiley.com/WileyCDA/Section/id-820227.html
format	Journal Article
author	Hallward-Driemeier, Mary Rijkers, Bob Waxman, Andrew
author_facet	Hallward-Driemeier, Mary Rijkers, Bob Waxman, Andrew
author_sort	Hallward-Driemeier, Mary
title	Can Minimum Wages Close the Gender Wage Gap? : Evidence From Indonesia
title_short	Can Minimum Wages Close the Gender Wage Gap? : Evidence From Indonesia
title_full	Can Minimum Wages Close the Gender Wage Gap? : Evidence From Indonesia
title_fullStr	Can Minimum Wages Close the Gender Wage Gap? : Evidence From Indonesia
title_full_unstemmed	Can Minimum Wages Close the Gender Wage Gap? : Evidence From Indonesia
title_sort	can minimum wages close the gender wage gap? : evidence from indonesia
publisher	Wiley
publishDate	2017
url	http://hdl.handle.net/10986/26638
_version_	1764462301407084544

Can Minimum Wages Close the Gender Wage Gap? : Evidence From Indonesia

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