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Abstract

This research estimates the effect of the minimum wage increase on the wage inequality in Java provinces between 2008 and 2014 using semiparametric methods. It is found that the increase in minimum wage decrease the wage inequality in DKI Jakarta, West Java, Central Java, and Banten Provinces if the employment effects of the minimum wage increase are ignored and the opposite results if we consider the employment effects. Different results occur in Yogyakarta Special Region and East Java provinces, the minimum wage increase will lead to an increase in wage inequality both for the inclusion or exclusion of the employment effects.

Bahasa Abstract

Penelitian ini mengestimasi pengaruh kebijakan peningkatan upah minimum terhadap ketimpangan upah provinsi-provinsi di Pulau Jawa pada rentang tahun 2008 dan 2014 menggunakan metode semiparametrik. Hasil penelitian menunjukkan bahwa meningkatnya upah minimum menurunkan ketimpangan upah di Provinsi DKI Jakarta, Jawa Barat, Jawa Tengah, dan Banten jika dampak pekerjaan (employment) tidak disertakan. Sebaliknya, jika menyertakan dampak pekerjaan, maka meningkatnya upah minimum akan meningkatkan ketimpangan upah. Hasil berbeda terjadi di Provinsi Daerah Istimewa Yogyakarta dan Jawa Timur dengan peningkatan upah minimum meningkatkan ketimpangan upah, baik tanpa dan dengan menyertakan dampak pekerjaan.

References

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