Analyzing the influence of education and work experience on women’s wages distribution in Indonesia

Abstract

This study aims to analyze the determinants of women’s wages, with a focus on the heterogeneity of the effects of education, work experience, employment status, and region of residence across various levels of the wage distribution. The data used are from the Indonesia Family Life Survey (IFLS-5) for the years 2014–2015. The study sample consisted of 5,319 female respondents aged 15 years and older. The quantile regression method was employed, utilizing the Mincer Earnings Model to capture variations in the returns to education and work experience across wage groups from low to high. Descriptive analysis results indicate that the average wage for women remains relatively low, with a fairly high level of inequality. The quantile regression results show that education and work experience have a significant impact on women’s wages across all quantiles, with the greatest impact observed in the low-wage group. Employment status as a civil servant consistently increases women’s wages, while women living in rural areas earn lower wages compared to those living in urban areas. These findings underscore the role of human capital and structural factors in shaping wage inequality among women in Indonesia.