Wage inequality associated with job status: Evidence from Indonesia and the Philippines

Abstract

This research investigates the wage differentials between temporary and permanent workers in Indonesia and the Philippines, based on their national Labour Force Survey data. The estimates show evidence of wage penalties in both countries. Moreover, Quantile Regression Estimates report that wage gaps could greatly vary across the wage distribution. The wage gap is smaller at the lower tails and becomes wider at the upper tails of the wage profile in Indonesia, suggesting the presence of a glass ceiling effect. On the other hand, no distribution effect is observed in the Philippines.