Article Sidebar

Submitted
March 14, 2021
Accepted
December 29, 2021
Published
February 14, 2022
Download
PDF
Statistic
Read Counter : 525 Download : 251

Downloads

Download data is not yet available.

Main Article Content

Abstract

One of the important issues in the Indonesian labor market is an educational mismatch. And one of the implications caused by educational mismatch is that the wages received are unsuitable with the educational qualifications have. This study attempts to relate the educational mismatch phenomenon to the issue of internal migration. Hence, this study aimed to reveal the effect of educational mismatch on the earning of workers, especially migrant and native workers. The discussion of educational mismatch was more specific to migrant workers and native workers because these two types of workers had quite different potential earnings. The data used in this research were gained from the National Labor Force Survey (SAKERNAS) in August 2019. The unit of analysis used was workers with labor/employees’ status other than TNI/POLRI aged 15-64 years and over. The results showed that migrant workers were more likely to experience over education than native workers, and native workers were more likely to experience undereducation than migrant workers. Then, based on the results of the multiple linear regression analysis, it was found that migrant workers encountered greater wage penalties than native workers.

Keywords

education migrant worker native worker wage

Article Details

License

Authors who publish with this journal agree to the terms:

Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.

Creative Commons License

Jurnal Ekonomi Pembangunan is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License..

How to Cite
Sitorus, F. M., & Wicaksono, P. (2022). The Effect of Educational Mismatch on Wages: A Comparative Study of Migrant and Native Workers. Jurnal Ekonomi Pembangunan, 19(2), 135–150. https://doi.org/10.29259/jep.v19i2.13937
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Allen, J., & van der Velden, R. (2001). Educational Mismatches Versus Skill Mismatches: Effects on Wages, Job Satisfaction, and on-the-Job Search. Oxford Economic Papers, 53(3), 434–452. https://doi.org/10.1093/oep/53.3.434
  2. Badan Pusat Statistik. (2017). Statistik Mobilitas Penduduk dan Tenaga Kerja 2017. Jakarta: BPS RI
  3. Badan Pusat Statistik. (2019). Pedoman Pencacah Survei Angkatan Kerja Nasional 2019. Jakarta: BPS RI.
  4. Becker, G. S. (1964). Human Capital: A Theoritical and Empirical Analysis, with Special References in Education (3rd edition). Chicago: The University of Chicago Press.
  5. Bitzan, J. D., & Bahrami, B. (2010). The Effects of Unions on Wages by Occupation in the Public Sector. International Business & Economics Research Journal (IBER), 9(7), 107–120. https://doi.org/10.19030/iber.v9i7.602
  6. Bryson, A. (2014). Union Wage Effects. IZA World of labor, 35, 1-10. https://doi.org/10.15185/izawol.35
  7. Bucci, G. A. (1993). Explaining Urban-Rural Income and Wage Differentials: A Study Using Aggregate Data for India. Applied Economics, 25(9), 1167–1174. https://doi.org/10.1080/00036849300000178
  8. Card, D. (2001). The Effect of Unions on Wage Inequality in the U.S. Labor Market. Industrial and Labor Relations Review, 54(2), 296–315. https://doi.org/10.1177/001979390105400206
  9. Carlino, G. A. (1986). Do Regional Wage Differ? Business Review, Federal Reserve Bank of Philadelphia, 17–25.
  10. Fox, J. T. (2009). Firm-Size Wage Gaps, Job Responsibility, and Hierarchical Matching. Journal of Labor Economics, 27(1), 83–126. https://doi.org/10.1086/597428
  11. Gabriel, P. E., & Schmitz, S. (2005). A Note on Occupational Variations in the Returns to Education in the US Labor Market. International Journal of Manpower, 26(5), 450–456. https://doi.org/10.1108/01437720510615134
  12. Ge, Y. (2014). Do Chinese Unions have “Real” Effects on Employee Compensation? Contemporary Economic Policy, 32(1), 187–202. https://doi.org/10.1111/coep.12012
  13. Harris, J. R., & Todaro, M. P. (1970). Migration, Unemployment and Developmnent : A Two-Sector Analysis. The American Economic Review, 60(1), 126–142. https://www.jstor.org/stable/1807860
  14. Heckman, J. J. (1979). Sample Selection Bias as a Specification Error. Econometrica, 47 (1), 153-161. http://www.jstor.org/stable/1912352
  15. International Labour Office. (2017a). Indonesia Jobs Outlook 2017: Harnessing Technology for Growth and Job Creation. Jakarta: ILO for Indonesia.
  16. International Labour Office. (2017b). How Useful is the Concept of Skills Mismatch? Geneva: ILO.
  17. International Labour Office. (2018). Measurement of Qualifications and Skills Mismatches of Persons in Employment. Geneva: ILO.
  18. Jovanovich, B. (1979). Job Matching and Theory of Turnover. Journal of Political Economy, 87(5), 972–990.
  19. Kalfa, E., & Piracha, M. (2017). Immigrants’ Educational Mismatch and the Penalty of Over-Education. Education Economics, 25(5), 462–481. https://doi.org/10.1080/09645292.2017.1298728
  20. Konings, J., & Vanormelingen, S. (2010). The Impact of Training on Productivity and Wages: Firm-Level Evidence. IZA Discussion Paper No. 4731.
  21. Lee, E. S. (1966). A Theory of Migration. Demography, 3(1), 47–57. https://doi.org/10.2307/2060063
  22. Li, I., Malvin, M., & Simonson, R. D. (2015). Overeducation and Employment Mismatch: Wage Penalties for College Degrees in Business. Journal of Education for Business, 90(3), 119–125. https://doi.org/10.1080/08832323.2014.988204
  23. Mardiana. (2014). Kesenjangan Penghasilan antar Gender Para Wirausaha dan Pekerja Tahun 2013. Tesis. Program Pascasarjana Multidisiplin Kajian Kependudukan dan Ketenagakerjaan. Depok: Universitas Indonesia.
  24. Mincer, J. (1974). Schooling, Experience, and Earning. National Bureau of Economic Research, Inc, 41–63. http://www.nber.org/chapters/c1765
  25. Montt, G. (2015). The Causes and Consequences of Field-of Study Mismatch: An Analysis Using PIAAC. OECD Social, Employment & Migration Working Papers (Issue 167). https://doi.org/10.1787/5jrxm4dhv9r2-en
  26. Nasrudin, R., Resosudarmo, B.P. (2019). Assimilation of Rural–Urban Migrants Under a Less Restrictive Internal Migration Policy: Evidence from Indonesia. Working Paper No. 2019/ 04. Australian National University.
  27. Pholphirul, P. (2017). Educational Mismatches and Labor Market Outcomes: Evidence from Both Vertical and Horizontal Mismatches in Thailand. Education and Training, 59(5). https://doi.org/10.1108/ET-11-2016-0173
  28. Piracha, M., & Vadean, F. (2012). Migrant Educational Mismatch and the Labor Market. IZA Discussion Papers No.6414. https://doi.org/10.4337/9781782546078.00017
  29. Puspasari, S. (2019). Educational Mismatch dan Pengaruhnya terhadap Pendapatan Lulusan Sekolah Menengah Kejuruan di Indonesia. Konferensi Nasional Ilmu Administrasi. Bandung: STIA LAN.
  30. Rogers, A., & Castro, L. J. (1981). Model Migration Schedules. In International Institute for Applied Systems Analysis, Research Report (Vols. 81–30). https://doi.org/10.2307/1532474
  31. Safuan, S., & Nazara, S. (2005). Identifikasi fenomena ‘Overeducation’ di Pasar Kerja Indonesia. Jurnal Ekonomi Dan Pembangunan Indonesia (JEPI), 6(1), 79–92.
  32. Sanroma, E., Ramos, R., Simon, H. (2008). The Portability of Human Capital and Immigrant Assimilation: Evidence for Spain. IZA Discussion Paper No. 3649.
  33. Sattinger, M. (2012). Assignment Models and Quantitative Mismatches. Department of Economics, University at Albany
  34. Schmidt, Peter & Strauss, R. P. (1975). The Prediction of Occupation using Multiple Logit Models. International Economic Review, 16(2), 471–486. https://www.jstor.org/stable/2525826
  35. Sharaf, M.F. (2013). Job-Education Mismatch and its Impact on the Earning of Immigrants: Evidence from Recent Arrivals to Canada. ISRN Economics, 1-14. http://dx.doi.org/10.1155/2013/452358
  36. Todaro, M. P. (1969). A Model of Labor Migration and Urban Unemployment in Less Developed Countries. The American Economic Review, 59(1), 138–148. http://www.jstor.org/stable/1811100
  37. Van ours, J.C. & Stoeldraijer, L. (2010). Age, Wage and Productivity. IZA Discussion Paper No. 4765.
  38. Verhaest, D., Sellami, S., & van der Velden, R. (2017). Differences in horizontal and vertical mismatches across countries and fields of study. International Labour Review, 156(1), 1–23. https://doi.org/10.1111/j.1564-913X.2015.00031.x
  39. Villarreal, A. (2016). The Education-Occupation Mismatch of International and Internal Migrants in Mexico, 2005–2012. Demography, 53(3), 865–883. https://doi.org/10.1007/s13524-016-0470-1
  40. Visintin, S., Tijdens, K., & van Klaveren, M. (2015). Skill Mismatch among Migrant Workers: Evidence from a Large Multi-Country Dataset. IZA Journal of Migration, 4(14), 1–34. https://doi.org/10.1186/s40176-015-0040-0
  41. Wajdi, M. N. (2010). Migrasi Antarpulau di Indonesia: Analisis Model Skedul Migrasi dan Model Gravitasi Hybrida. Universitas Indonesia
  42. Willis, R. J. (1986). Wage determinants: A Survey and Reinterpretation of Human Capital Earnings Functions. Handbook of Labor Economics (Vol. 1, pp. 525–602). https://doi.org/10.1016/S1573-4463(86)01013-1
  43. Young, A. (2013). Inequality, the Urban-Rural Gap, and Migration. The Quarterly Journal of Economics, 1727–1785. https://doi.org/10.1093/qje/qjt025.

Similar Articles

You may also start an advanced similarity search for this article.