Labor Economics Series
LABOR MARKET DISCRIMINATION
Tokoh Pejuang Wanita Indonesia
Raden Adjeng Kartini 21 April 1879 – 17 September 1904 2
Pemikiran Raden Adjeng Kartini Adanya keinginan untuk memperbaiki kondisi kaum wanita yang disebabkan kungkungan adat, antara lain : • Dunia wanita hanya sebatas tembok rumah. • Tidak bebas mendapatkan akses pendidikan. • Dipingit dan dinikahkan dengan pria yang tidak dikenal. 3
Fakta di Indonesia
4
a
ta
an ni
si uk od
ny in La
Pr
r Pe
sa Ja
an
a
l ua nj Pe
ah Us
Pria Wanita
TU
TU
TU
ta Ta
l na io
n
s fe ro
na pi im m pe Ke
Wanita
P ga na Te
5
0 Pria
Penduduk yang Bekerja (2007)
30.000.000
20.000.000
10.000.000
Penduduk yang Bekerja (2007) JENIS KELAMIN Jenis Pekerjaan Utama
Jumlah Pria
Tenaga Profesional
1.945.782
1.857.339
3.803.121
310.089
57.295
367.384
Tata Usaha
2.608.947
1.383.556
3.992.503
TU Penjualan
8.590.673
8.046.116
16.636.789
TU Jasa
3.351.697
2.992.762
6.344.459
TU Pertanian
26.479.175
15.753.497
42.232.672
Produksi
18.446.465
5.325.368
23.771.833
418.454
15.926
434.380
62.151.282
35.431.859
97.583.141
Kepemimpinan
Lainnya Jumlah 6
Wanita
sa Ja
n ua Ke
n ga
n
n ga
an ng
an ut gk An a ag rd Pe
rik
a un ng Ba st Li
tri n ba
an ni
m
s du In rta Pe
rta Pe
7
Pria Wanita
0
Pria Wanita
Rata-rata Upah (2006)
1.600.000
1.200.000
800.000
400.000
Rata-rata Upah (2006) SEKTOR
LAPANGAN PEKERJAAN
1
Pertanian, Kehutanan, Perburuan, Perikanan (Agriculture,Forestry,Hunting,Fishery)
2
Pertambangan, Penggalian (Mining and Quarrying)
3
Industri Pengolahan (Manufacturing Industries)
4
Listrik, gas dan air (Electricity, Gaz and Water)
5
WANITA
438.149
234.586
1.541.241
771.415
826.257
583.768
1.176.160
1.338.737
Bangunan (Construction)
734.070
1.073.573
6
Perdagangan Besar, Rumah Makan & Hotel (Wholesale Trade,Restaurant & Hotel)
806.110
621.248
7
Angkutan, Pergudangan dan Komunikasi (Transportation,Storage & Communication)
934.761
944.419
8
Keuangan, Asuransi,Jasa Perusahaan (Financing,Insurance,Business Services)
1.422.252
1.461.926
9
Jasa Kemasyarakatan (Public Services)
1.126.559
789.557
827.101
612.131
Rata-rata 8
PRIA
Penduduk yang Bekerja Berdasarkan Jam Kerja Tahun 2007
45.000.000
30.000.000
15.000.000
0 Wanita Pria 9
Pria Wanita
<1 jam
1-35 jam
>35 jam
803.388
14.623.275
20.005.196
1.798.703
15.615.701
44.736.878
Konsep Diskriminasi
10
Konsep Diskriminasi George Borjas : Differences in EARNINGS and EMPLOYMENT OPPORTUNITIES among equally skilled workers employed in the same job simply because of the worker’s race, gender, national origin, sexual orientation, or other seemingly irrelevant characteristics.
11
Konsep Diskriminasi
Discrimination means treating people differently and less favourably because of characteristics that are not related to their merit or the requirements of the job. These include race, colour, sex, religion, political opinion, national extraction and social origin. 12
The Discrimination Coefficient
13
The Discrimination Coefficient Lauched for the first time by Gary S. Becker
The Economics of Discrimination (1957)
14
The Discrimination Coefficient
• Basic Concept : Taste Discrimination • Assumption Two types of workers : • White workers : wage wW • Black workers : wage wB
15
The Discrimination Coefficient • If the employer is prejudiced againts black, employer gets disutility from hiring black workers. • Disutility : employer will act as if costs for black worker wB (1 + d), where d is positive number and is called :
The Discrimination Coefficient 16
The Discrimination Coefficient • Suppose that wB = $10, and that d =0,5 ; the employer will then act as if hiring a black worker costs $ 15 • The greater the prejudiced, the greater is the disutility from hiring black workers, and the greater is the discrimination coefficient d.
17
The Discrimination Coefficient
• If these black employers prefer to hire black workers, they will act as if hiring a black worker is cheaper than it actually is.
Nepotism Coefficient wB (1 – n )
18
Labor Market Discrimination Analysis
F IR M
N on D iscrim ina to ry F irm
W = VM P
19
D is crim ina to ry F irm
W hite F irm aga ints B lack
B la ck Firm a g a in ts B la ck
D iscrim inatio n C oeffic ient is ve ry H igh
D isc rim in a tio n C o e fficie n t is rela tive ly L o w
Employer Discrimination
20
Skill and Labor Market Outcomes (2001) WHITE
HISPANIC
Male
Female
Male
Female
Male
Female
Highschool Graduate or more (Percent)
84.3
85.2
78.5
78.9
56.1
57.9
Bachelor’s degree or more (Percent)
29.1
25.4
16.4
17.5
11.0
11.2
Labor Force Participation Rate (Percent)
79.9
59.9
72.1
65.2
83.8
59.3
Unemployment Rate (Percent)
4.7
3.6
8.0
7.0
5.2
6.6
49.8
29.6
33.5
26.0
30.8
22.3
55.4
37.1
38.5
30.8
34.3
28.0
Annual Earnings (in $1,000) Annual Earnings (Full Time) 21
BLACK
Fact : White Wage > Black Wage
22
Employer Discrimination • Assumption : White Workers and Black Workers are Perfect Subtitutes in Production. • Firms’s output depends on the total number of workers hired, regardless of their race have the same Marginal Product of Labor ( MPE )
23
Employer Discrimination Production function:
q = f ( EW + EB ) q
firm’s output
EW number of white workers hired EB 24
number of black workers hired
Employment in a non Discriminatory Firm
25
Employment in a non Discriminatory Firm • Both groups of workers have the same Value of Marginal Product, a non discriminatory firms will hire whichever group is Cheaper • Suppose that wW > wB , a firms that doesn’t discriminate will hire black workers up to the point where wB = VMPE E 26
* B
The Employment Decision of a Firm That Does Not Discriminate Dollar
VMPE
Black workers wage is less than wB = VMPE white wage
How many worker will be hired..??
wB
E 27
* B
?
Employment
Employment in a Discriminatory Firm
28
Employment in a Discriminatory Firm
• The employer act as if black wage is not wB , but instead equal to wB (1 + d). Where d is discrimination coefficient. • The employer’s hiring decision based on a comparison wW and wB (1 + d) – Hire only blacks if wB (1 + d) < wW – Hire only white if wB (1 + d) > wW 29
Employment in a Discriminatory Firm
• As long as black and white workers are perfect subtitutes, firms have a segregated workforce. • Employer’s who have little prejudice and hence have small discrimination coefficient, will hire only BLACKS (called “Black Firm”). • Employer’s who are very prejudice and have very large discrimination coefficient, will hire only WHITES (called “White Firm”). 30
Employment in a Discriminatory Firm WHITE FIRM • The white firm hires workers up to the point where : wW = VMPE • Assumption : wW > WB • The white firm is paying an excessively high price for its workers and hires relatively few workers ( EW* )
31
The Employment Decision of a Prejudiced Firm Dollar
wW
White Firm
VMPE * W
E 32
Employment
Employment in a Discriminatory Firm BLACK FIRM • Non discriminatory firms : * wB = VMPE E B • If discrimination coefficient d0 : – Price of Black Labor wB ( 1 + d0 ) – Amount of Labor hired : wB ( 1 + d0 ) = VMPE 33
Employment in a Discriminatory Firm
BLACK FIRM The number of black workers hired, therefore, is smaller for firms that have larger discrimination coefficient.
34
The Employment Decision of a Prejudiced Firm Dollar
Discrimination Coefficient
wB 1 d1
Black Firm
wB 1 d 0
wB VMPE
E 35
1 B
EB0 EB*
Employment
Discrimination and Profits
36
Discrimination and Profits Firms that discriminate lose on two counts : • The prejudiced employer could have hired the same number of black worker at lower wage. Because black and white workers are perfect subtitutes. • Discriminatory black firms are hiring too few workers ( E B0 or E 1B ) they are giving up profits in order to minimize contact with black workers. 37
Profit and Discrimination Coefficient Dollar max
Max Profit w Black Firm 0
38
White Firm dw
Discrimination Coefficient
Discrimination and Profits
The Most Profitable Firm
Zero Discrimination
39
Labor Marker Equilibrium
40
Discrimination and Profits • Firm dengan Discrimination Coefficient : – Rendah – Tinggi
cenderung Black Firm cenderung White Firm
• Asumsi : Supply Black Worker Perfectly Inelastic sejumlah N Black person tidak terpengaruh tingkat upah.
41
Labor Market Equilibrium Black-White Wage Ratio S
( wB / wW )' D’
1 R
( wB / wW ) * D 0 42
N
Black Employment
Employee Discrimination
43
Employee Discrimination
• Diskriminasi dilakukan oleh “Fellow Worker” • Misal : White worker yang bekerja pada Black Firm dengan upah wW akan merasa mendapat upah wW (1- d). • Tidak berpengaruh terhadap “Profitability of Firms” karena white worker dan black worker adalah perfect subtitutes sehingga firm membayar jumlah upah yang sama. 44
Customer Discrimination
45
Customer Discrimination
• Dikemukakan oleh Harry J. Holzer dan Keith R. Ihlanfeldt (1998) research di Atlanta, Boston, Detroit dan Los Angeles. • Keputusan membeli tidak ditentukan oleh Actual Price ( p ) tapi oleh The UtilityAdjusted Price p (1 + d). • Employer dapat mengatur tenaga penjualan sesuai kondisi. 46
Customer Discrimination
TYPE FIRM
> 75 % WHITE CUSTOMER
PERBEDAAN
Customer & worker bertemu
58,0 %
9,0 %
49,0 %
Customer & worker tidak bertemu
46,6 %
12,2 %
34,4 %
-
-
14,6 %
Perbedaan
47
> 50 % BLACK CUSTOMER
Customer Discrimination and NBA
Lawrence Kahn and Peter Sherer 1998) : A study of attenance records indicates that replacing a black player with an eqqually talented white player bring in about 9,000 additional fans per year. At $50 a head (a very conservative estimate of ticket prices and concession revenues), the racial switch would increase annual team revenues by roughly $450,000 48
Measuring Discrimination
49
Measuring Discrimination Asumsi : Tenaga kerja terdiri dari ___ • Male, dengan average wage W
M ___
• Female, dengan average wage WF Diskriminasi : selisih average wage, yaitu : ___
W 50
___
WM
___
WF
Measuring Discrimination Pengembangan model :
Schooling mempengaruhi pendapatan Earning Function : • Male : wM M • Female
:
M SM
wF F F S F
M menyatakan pendapatan pria meningkat bila mendapatkan tambahan 1 tahun pendidikan. 51
Measuring Discrimination
Model Regresi : ___
___
___
W WM WF M M s M F F s F
52
Measuring The Impact of Discrimination on the Wage Men’s Earning
Dollars Men’s Earning
Men’s Earning Function
___
WM Women’s Earning Function
Women’s Earning * F
w
M
Measure Discrimination :
___
Woman’s Earning
53
___ *Schooling Women’sMen’s Schooling
wF
WF F __
__
sF
sM
WF
Schooling
Trend in Female-Male Wage Ratio (USA 1930-1990) 0.72 0.69 0.66 0.63 0.60 0.57 0.54 1930
1940
1950
1960 Year
54
1970
1980
1990
Global Gender Gap 2007 INDONESIA Rank 2007 : 81 Score 2007 : 0.6550 ( 1 = equality ) Rank 2006 : 68 Score 2007 : 0.6541( 1 = equality )
55
Global Gender Gap 2007
56
Global Gender Gap 2007 INDONESIA
57
Terima kasih… 58
