Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/152421
Authors: 
Marinescu, Ioana
Triyana, Margaret
Year of Publication: 
2016
Citation: 
[Journal:] IZA Journal of Labor & Development [ISSN:] 2193-9020 [Volume:] 5 [Year:] 2016 [Issue:] 2 [Pages:] 1-43
Abstract: 
What are the sources of wage growth in developing countries? In the USA, 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 28 %, which is higher than the return to experience. Furthermore, we estimate a 35 % return to 10 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 USA may be a reflection of Indonesia's lower level of development.
Subjects: 
Human capital
Informal labor market
Returns to tenure
JEL: 
J3
O1
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/4.0/
Document Type: 
Article
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