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
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Englisch
- Bibliographic citation
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Series: IZA Discussion Papers ; No. 9066
- Classification
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Wirtschaft
Wage Level and Structure; Wage Differentials
- Subject
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experience
formality
informality
wages
tenure
- Event
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Geistige Schöpfung
- (who)
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Marinescu, Ioana E.
Triyana, Margaret
- Event
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Veröffentlichung
- (who)
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Institute for the Study of Labor (IZA)
- (where)
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Bonn
- (when)
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2015
- Handle
- Last update
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10.03.2025, 11:44 AM CET
Data provider
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