Arbeitspapier

The Sources of Wage Growth in a Developing Country

What are the sources of wage growth in developing countries? In the US, general labor market experience is the key source of wage growth, with job seniority playing a smaller role. By contrast, in Indonesia, the 10-year return to seniority is 24 to 29%, which is higher than the return to experience. Furthermore, we estimate a 35% return to ten years of tenure in the formal sector, with no significant return to tenure in the informal sector. The difference in the sources of wage growth in Indonesia versus the US may be a reflection of Indonesia's lower level of development.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 9066

Classification
Wirtschaft
Wage Level and Structure; Wage Differentials
Subject
experience
formality
informality
wages
tenure

Event
Geistige Schöpfung
(who)
Marinescu, Ioana E.
Triyana, Margaret
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2015

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Marinescu, Ioana E.
  • Triyana, Margaret
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2015

Other Objects (12)