Labor Economics Series LABOR MARKET DISCRIMINATION

(1)

LABOR MARKET

Labor Economics Series

LABOR MARKET

(2)

Tokoh Pejuang Wanita Indonesia

(3)

Pemikiran Raden Adjeng Kartini

• Dunia wanita hanya sebatas tembok Adanya keinginan untuk memperbaiki kondisi kaum wanita yang disebabkan kungkungan adat, antara lain :

• Dunia wanita hanya sebatas tembok

rumah.

• Tidak bebas mendapatkan akses

pendidikan.

(4)

Fakta di Indonesia

(5)

Penduduk yang Bekerja (2007)

20.000.000 30.000.000 0 10.000.000 Ten aga Pro fes Kep_em im pin Tata

Usa_ha TUPen_jua lan

TU

Jas_a TUPer_tan ian

Pro

duk_si Lainnya

W a n it a P ri a

(6)

Penduduk yang Bekerja (2007)

Jenis Pekerjaan Utama

JENIS KELAMIN Jumlah Pria Wanita Tenaga Profesional 1.945.782 1.857.339 3.803.121 Kepemimpinan 310.089 57.295 367.384 Tata Usaha 2.608.947 1.383.556 3.992.503 Tata Usaha 2.608.947 1.383.556 3.992.503 TU Penjualan 8.590.673 8.046.116 16.636.789 TU Jasa 3.351.697 2.992.762 6.344.459 TU Pertanian 26.479.175 15.753.497 42.232.672 Produksi 18.446.465 5.325.368 23.771.833 Lainnya 418.454 15.926 434.380

(7)

Rata-rata Upah (2006)

1.200.000 1.600.000 0 400.000 800.000 Pert ania_n Pertam ban Ind

ustr_i Listrik Ban_gun an

Perd aga

nga

Ang

kuta_n Keuang_an JasWa a

n it a P ri a

(8)

Rata-rata Upah (2006)

SEKTOR _{LAPANGAN PEKERJAAN} PRIA WANITA 1 Pertanian, Kehutanan, Perburuan, Perikanan_{(Agriculture,Forestry,Hunting,Fishery)} 438.149 234.586 2 Pertambangan, Penggalian (Mining and Quarrying) 1.541.241 771.415 3 Industri Pengolahan (Manufacturing Industries) 826.257 583.768 3 Industri Pengolahan (Manufacturing Industries) 826.257 583.768 4 Listrik, gas dan air (Electricity, Gaz and Water) 1.176.160 1.338.737 5 Bangunan (Construction) 734.070 1.073.573 6 Perdagangan Besar, Rumah Makan & Hotel (Wholesale

Trade,Restaurant & Hotel) 806.110 621.248 7 Angkutan, Pergudangan dan Komunikasi (Transportation,Storage &_{Communication)} 934.761 944.419 8 Keuangan, Asuransi,Jasa Perusahaan (Financing,Insurance,Business_Services) 1.422.252 1.461.926

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Penduduk yang Bekerja Berdasarkan

Jam Kerja Tahun 2007

30.000.000 45.000.000 0 15.000.000 Wanita Pria

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Konsep Diskriminasi

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Konsep Diskriminasi

Differences in EARNINGS and

EMPLOYMENT OPPORTUNITIES

among equally skilled workers

George Borjas :

among equally skilled workers employed in the same job simply

because of the worker’s race, gender, national origin, sexual orientation, or other seemingly irrelevant characteristics.

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Konsep Diskriminasi

Discrimination means treating people Discrimination means treating people differently and less favourably because of characteristics that are not related to their merit or the requirements of the job.

These include race, colour, sex, religion, political opinion, national extraction and

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The Discrimination Coefficient

(14)

The Discrimination Coefficient

Lauched for the first time by Gary S. Becker

(15)

• Basic Concept : Taste Discrimination

• Assumption  Two types of workers :

The Discrimination Coefficient

• Assumption  Two types of workers :

• White workers : wage  w_W

(16)

• If the employer is prejudiced againts

black, employer gets disutility from hiring black workers.

The Discrimination Coefficient

• Disutility : employer will act as if costs

for black worker w_B (1 + d), where d is positive number and is called :

(17)

• Suppose that w_B = $10, and that d =0,5 ; the employer will then act as if hiring a black worker costs $ 15

The Discrimination Coefficient

• The greater the prejudiced, the greater is

the disutility from hiring black workers, and the greater is the discrimination

(18)

• If these black employers prefer to hire black workers, they will act as if hiring a black worker is cheaper than it actually is.

The Discrimination Coefficient

black worker is cheaper than it actually is.

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Labor Market Discrimination Analysis

F IR M N on D iscrim ina to ry F irm D is crim ina to ry F irm F irm W = V M P F irm W hite F irm a ga in ts B la ck B la ck F irm a g a in ts B la ck

(20)

Employer Discrimination

(21)

Skill and Labor Market Outcomes (2001)

WHITE BLACK HISPANIC Male Female Male Female Male Female Highschool Graduate or

more (Percent) 84.3 85.2 78.5 78.9 56.1 57.9

Bachelor’s degree or more

29.1 25.4 16.4 17.5 11.0 11.2 Bachelor’s degree or more

(Percent) 29.1 25.4 16.4 17.5 11.0 11.2

Labor Force Participation

Rate (Percent) 79.9 59.9 72.1 65.2 83.8 59.3

Unemployment Rate

(Percent) 4.7 3.6 8.0 7.0 5.2 6.6

(22)

Fact :

(23)

• Assumption :

White Workers and Black Workers are

Perfect Subtitutes in Production.

Employer Discrimination

• Firms’s output depends on the total

number of workers hired, regardless of their race  have the same Marginal

(24)

Employer Discrimination

Production function:

q = f ( E

_W

+ E

_B

)

q  firm’s output

E_W  number of white workers hired

(25)

Employment in

a non Discriminatory Firm

(26)

Employment in a non Discriminatory Firm

• Both groups of workers have the same

Value of Marginal Product, a non

discriminatory firms will hire whichever group is Cheaper

• Suppose that w_W > w_B , a firms that

doesn’t discriminate will hire black workers up to the point where

(27)

The Employment Decision of a Firm

That Does Not Discriminate

Dollar _{wage is less than}Black workers

white wage How many worker will be hired..??

?

VMP_E w_B = VMP_E B

w

(28)

Employment in a

Discriminatory Firm

(29)

• The employer act as if black wage is not

w_B , but instead equal to w_B (1 + d).

Where d is discrimination coefficient.

Employment in a Discriminatory Firm

• The employer’s hiring decision based on

a comparison w_W and w_B (1 + d)

(30)

• As long as black and white workers are perfect

subtitutes, firms have a segregated workforce.

• Employer’s who have little prejudice and hence

Employment in a Discriminatory Firm

• Employer’s who have little prejudice and hence

have small discrimination coefficient, will hire only BLACKS (called “Black Firm”).

• Employer’s who are very prejudice and have

very large discrimination coefficient, will hire only WHITES (called “White Firm”).

(31)

• The white firm hires workers up to the

point where : w_W = VMP_E

Assumption : w > W

Employment in a Discriminatory Firm

WHITE FIRM

• Assumption : w_W > W_B

• The white firm is paying an excessively

high price for its workers and hires relatively few workers ( * )

W

(32)

W

w

Dollar

The Employment Decision of a

Prejudiced Firm

White Firm

Employment

VMP_E

(33)

• Non discriminatory firms :

w_B = VMP_E



Employment in a Discriminatory Firm

BLACK FIRM

*

B

E

• If discrimination coefficient d₀ :

– Price of Black Labor



w_B ( 1 + d₀ )

(34)

Employment in a Discriminatory Firm

BLACK FIRM

The number of black workers hired, therefore, is smaller for firms that have larger

is smaller for firms that have larger discrimination coefficient.

(35)

The Employment Decision of a

Prejudiced Firm

Dollar Black Firm



1 d



w 



1 d₁



w_B  Discrimination Coefficient B w VMP_E



1 d₀



w_B 

(36)

Discrimination and Profits

(37)

Firms that discriminate lose on two counts :

• The prejudiced employer could have hired

the same number of black worker at lower wage. Because black and white workers are

Discrimination and Profits

wage. Because black and white workers are

perfect subtitutes.

• Discriminatory black firms are hiring too few

(38)

Dollar

Profit and Discrimination Coefficient

_max

Max Profit

Discrimination Black Firm _w d_w 0 White Firm

Max Profit

(39)

The Most Profitable Firm



Zero Discrimination

Discrimination and Profits

(40)

Labor Marker Equilibrium

(41)

• Firm dengan Discrimination Coefficient :

– Rendah  cenderung Black Firm

– Tinggi  cenderung White Firm

Discrimination and Profits

• Asumsi : Supply Black Worker Perfectly

Inelastic



sejumlah N Black person tidak terpengaruh tingkat upah.

(42)

Labor Market Equilibrium

Black-White Wage Ratio 1 S D’ )' / (w_B w_W * ) / (w_B w_W 1 R D D’

(43)

Employee Discrimination

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• Diskriminasi dilakukan oleh “Fellow Worker”

• Misal : White worker yang bekerja pada Black

Firm dengan upah w akan merasa mendapat

Employee Discrimination

Firm dengan upah w_W akan merasa mendapat upah w_W (1- d).

• Tidak berpengaruh terhadap “Profitability of

Firms” karena white worker dan black worker adalah perfect subtitutes sehingga firm

(45)

Customer Discrimination

(46)

• Dikemukakan oleh Harry J. Holzer dan Keith R. Ihlanfeldt (1998)



research di Atlanta,

Boston, Detroit dan Los Angeles.

Customer Discrimination

• Keputusan membeli tidak ditentukan oleh

Actual Price ( p ) tapi oleh The Utility-Adjusted Price



p (1 + d).

(47)

Customer Discrimination

TYPE FIRM > 50 % BLACK CUSTOMER > 75 % WHITE CUSTOMER PERBEDAAN Customer & worker

58,0 %

9,0 %

49,0 %

worker bertemu

58,0 %

9,0 %

49,0 %

Customer & worker tidak bertemu

46,6 %

12,2 %

34,4 %

(48)

Customer Discrimination and NBA

Lawrence Kahn and Peter Sherer 1998) :

A study of attenance records indicates that replacing a black player with an eqqually talented white player bring in eqqually talented white player bring in about 9,000 additional fans per year.

At $50 a head (a very conservative estimate of ticket prices and concession revenues), the

(49)

Measuring Discrimination

(50)

Measuring Discrimination

___ M

W

___ F W

Asumsi : Tenaga kerja terdiri dari

• Male, dengan average wage

• Female, dengan average wage

___ ___ ___ F M

W







(51)

Measuring Discrimination

Pengembangan model :

Schooling mempengaruhi pendapatan

Earning Function : • Male :

_w









_S

• Male : • Female : M M M M

S

w









F F F F

S

w









(52)

Measuring Discrimination

Model Regresi : ___ ___ ___ F F F M M M F M

W

s

W























___ ___ ___

(53)

Measuring The Impact of

Discrimination on the Wage

Dollars Women’s Earning Function ___ M W * Men’s Earning Function Women’s Earning Men’s Earning Men’s Earning M



 ___ F W Function * F

w

Women’s SchoolingMen’s Schooling

Measure Discrimination : * F

w

_W____F Woman’s Earning

(54)

Trend in Female-Male Wage Ratio

(USA 1930-1990)

0.63 0.66 0.69 0.72 0.54 1940 1950 1960 1970 1930 1980 1990 Year 0.57 0.60 0.63

(55)

Global Gender Gap 2007

INDONESIA

Rank 2007 : 81 Score 2007 : 0.6550 ( 1 = equality ) Rank 2006 : 68 Score 2007 : 0.6541( 1 = equality )

(56)

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Global Gender Gap 2007

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