Jurnal Ekonomi Pembangunan
Vol. 19 No. 2 (2021): Jurnal Ekonomi Pembangunan

The Effect of Educational Mismatch on Wages: A Comparative Study of Migrant and Native Workers

Ferry Maurist Sitorus (BPS-Statistics of Empat Lawang Regency)
Padang Wicaksono (Faculty of Economic and Business, Universitas Indonesia)



Article Info

Publish Date
14 Feb 2022

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.

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Journal Info

Abbrev

jep

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Ekonomi Pembangunan is a peer-reviewed journal that provides a forum for scientific works pertaining to Development Economics. Published twice in a year (June and December). This Journal has p-ISSN 1829-5843, and e-ISSN 2685-0788. This journal was first published since June 2003 by the ...