The Impact of Education and Work Experiences on Wage: Evidence from Indonesian Manufacturing Sector
Khalifany Ash Shidiqi (a), Anggun Pasiya (b)
(a) Universitas Muhammadiyah Yogyakarta
(b) Universitas Muhammadiyah Yogyakarta
Abstract
In Indonesia, there exist an interesting trend from manufacturing sector in which the growth of employment is getting higher every year. It indicates that many people who have pursued education and graduated are competing in this sector. This research aims to provide evidence about the effect of educational attainment on wage rate in Indonesian manufacturing sector. The model employed is the Mincer Earnings Model that explains wage is a function of schooling and experience. The data of this research is obtained from IFLS (Indonesian Family Life Survey) wave 5 with 1.868 number of observations. The multiple regression analysis with robust standard error is used for the estimation. Empirically, we expect that educational attainment and work experiences have a strong statistical relationship on wage positively.
Keywords: Wage, Manufacture Sector, Educational Attainment, Experience, IFLS
Topic: International Conference of Islamic Economic and Financial Inclusion