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GTAP Resources: Resource Display

GTAP Resource #4434

"Gender inequality and labor participation in Indonesia"
by Leroy de Morel, Laetitia and Angga Pradesha

Labor Participation and Gender Inequality in Indonesia

I. Motivation and Outline

Gender income disparity is a major issue in economic development. This was echoed as one main agenda under the Millennium Development Goals (MDGs) set by the United Nations (UN, 2000). According to the Human Development Index (HDI) report (UNDP, 2011), Indonesia is ranked 100 out of 146 countries on gender inequality suggesting that Indonesia still needs to put more attention on gender equality issues within its economic development process.
Issue on inequality and economic development was firstly investigated by Kuznets (1955); who states that individual’s income in a country and income inequality has an inverted U relationship, implying an increased inequality during early stages of development, which decreases in the long run. Boserup (1970) argues that high gender inequality in the early stage of economic development originates from the nature of jobs for each. The human capital theory proposed by Mincer (1958) suggests that educational level is the main determinant for labor market performance. Likewise, Becker (1965) defines the decision to join the labor market as a combined utility maximization of individual and household’s time allocations, with education a major component. Using panel data of 70 nations for years 1965 and 1970, Pampel and Tanaka (1986) empirically confirm Becker’s theory and suggest a curvilinear effect for female workers participation in the process of economic development. However, a study by Fitzenberg et al. (2006) on West Germany finds a persistent gender gap over the life cycle based on skill level remains despite the average participation and employment gender gap narrowing. Maurer et al (1973) investigate labor force participation of Thai women and find female education affects labor participation with coefficients between -0.026 and 0.005.
This paper attempts to investigate the gender, education, and labor participation relationships s...

Resource Details (Export Citation) GTAP Keywords
Category: 2014 Conference Paper
Status: Published
By/In: Presented at the 17th Annual Conference on Global Economic Analysis, Dakar, Senegal
Date: 2014
Created: Leroy de Morel, L. (4/14/2014)
Updated: Leroy de Morel, L. (4/14/2014)
Visits: 291
- Economic analysis of poverty
- Education
- Labor market issues
- Asia (Southeast)

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