Impact of Trading International and Competition Industry to Wage Gaps in Industry Manufacturing in Indonesia

Authors

  • Rahma Deni Widia Putri Universitas Indonesia
  • T.M. Zakir Sjakur Machmud Universitas Indonesia

DOI:

https://doi.org/10.58258/jisip.v8i4.7257

Keywords:

Wage Inequality, International Trade, Industrial Competition.

Abstract

This research analyzes the impact of international trade and industrial competition on the wage gap between skilled and unskilled workers in Indonesia's manufacturing industry. The study uses firm-level panel data, specifically the Large and Medium Industry Statistics (IBS) from BPS and provincial minimum wage data from the Ministry of Manpower and Transmigration. Model modifications are made for different industrial groupings, namely general manufacturing, labor-intensive manufacturing, and capital-intensive manufacturing. The empirical analysis presented in this research shows that an increase in international trade contributes to a reduction in the wage gap between skilled and unskilled workers in Indonesia's manufacturing industry. However, increased industrial competition has the opposite effect. Additionally, this research conducts a comparative analysis of the impact of international trade and industrial competition on labor-intensive and capital-intensive industries.

Downloads

Published

2024-11-01

Issue

Vol. 8 No. 4 (2024): JISIP (Jurnal Ilmu Sosial dan Pendidikan) (November)

Section

Articles

License

Copyright Notice
Authors who publish with JISIP (Jurnal Ilmu Sosial dan Pendidikan) agree to the following terms:

  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License (CC BY-SA 4.0) that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal. 
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.

How to Cite

Impact of Trading International and Competition Industry to Wage Gaps in Industry Manufacturing in Indonesia. (2024). JISIP (Jurnal Ilmu Sosial Dan Pendidikan), 8(4), 2186-2195. https://doi.org/10.58258/jisip.v8i4.7257