Gender Wage Gap and Commuting Time: An Empirical Analysis in The Jakarta Metropolitan Area

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Jurnal Ekonomi Kependudukan dan Keluarga Jurnal Ekonomi Kependudukan dan Keluarga

Volume 1 Article 4

1-30-2024

Gender Wage Gap and Commuting Time: An Empirical Analysis in Gender Wage Gap and Commuting Time: An Empirical Analysis in The Jakarta Metropolitan Area

The Jakarta Metropolitan Area

Thiraffi Akhsananta Abdillah

Department of Economics Business, Diponegoro University, Semarang, Indonesia, [email protected]

Ariska Nurfajar Rini

Okki Alfianto

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Recommended Citation Recommended Citation

Abdillah, Thiraffi Akhsananta; Rini, Ariska Nurfajar; and Alfianto, Okki (2024) "Gender Wage Gap and Commuting Time: An Empirical Analysis in The Jakarta Metropolitan Area," Jurnal Ekonomi

Kependudukan dan Keluarga: Vol. 1, Article 4.

DOI: 10.7554/jekk.v1i1.04

Available at: https://scholarhub.ui.ac.id/jekk/vol1/iss1/4

This Article (Research result) is brought to you for free and open access by the Faculty of Economics & Business at UI Scholars Hub. It has been accepted for inclusion in Jurnal Ekonomi Kependudukan dan Keluarga by an

authorized editor of UI Scholars Hub.

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This study aims to analyze the role of commuting time in explaining the gender wage gap in the Jakarta Metropolitan Area. This study presents an analysis of the gender wage gap as well as its explained and unexplained components using the Blinder-Oaxaca method with data provided by the 2019 Jakarta Metropolitan Area Commuter Survey. The addition of commuting time as one of the explanatory factors is a novel aspect of the analysis. Two different methods, known as ordinary least squares and the Heckman selection model, are used to estimate wage equality for men and women. Depending on the method, estimates of the gap range from 3%

to 11%. The decomposition of the gap reveals that between 2% and 3% of the gap is explained by the worker characteristic known as the endowment factor, while 7% to 12% of the gap is unexplained. This shows that the contribution of the unexplained factor to the income gap between genders is greater than the endowment factor. Commute time is found to account for 0.4% of the logarithmic wage gap, as explained by the worker characteristics. Results clearly identified that women have shorter average commute times compared to men, which may be due to women’s willingness to be paid less as their compensating for shorter commute times.

Keywords: gender wage gap, commuting, Blinder-Oaxaca decomposition

(Received: October 28, 2023 - Accepted: January 4, 2024 - Published: January 30, 2024)

Gender Wage Gap and Commuting Time: An Empirical Analysis in the Jakarta Metropolitan Area

Thiraffi Akhsananta Abdillahâ, Ariska Nurfajar Riniâ*, Okki Alfiantoâ

aDepartment of Economics and Business, Diponegoro University, Semarang, Indonesia Jurnal Ekonomi Kependudukan dan Keluarga

Vol. 1, No. 1 January 2024: 42-52 e-ISSN 1234-5678

* Corresponding author: Ariska Nurfajar Rini Department of Economics and Business, Diponegoro University, Semarang, Indonesia, email: ariskanurfajarrini@lecturer.

undip.ac.id

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2

0 1 2 3 4 1

log(wage_i^M)a  commute_i^M  yeduc_i^M  exper_i^M  exper_i ^M  ⁿ_k_ _kC_k^M u_i (1)

2

0 1 2 3 4

1

log( _i^F) _i^F _i^F _i^F _i ^F ^N _K _K^F _i (2)

K

wage commute yeduc exper exper C u



     





log( _i^M) log( _i^F) (3) gap wage  wage

log( ) (4)

M

M M

i

i i

wage  ^ X

log( ) (5)

F

F F

i i i

wage  ^ X



ⁱ^M ^Fⁱ



ⁱ^M ^Fⁱ ⁽ ^Mⁱ ^Fⁱ ⁾ ⁽⁶⁾

gap X X ^ X ^  ^

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Tabel 1 Descriptive Statistics

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Table 2

Wage Equation Estimation

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Table 3

Blinder-Oaxaca Decomposition

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