Labor Economics Series LABOR MARKET DISCRIMINATION

Transkripsi

1 Labor Economics Series LABOR MARKET DISCRIMINATION

2 Tokoh Pejuang Wanita Indonesia Raden Adjeng Kartini 21 April September

3 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

4 Fakta di Indonesia 4

5 Penduduk yang Bekerja (2007) Pria Wanita Tenaga Profesional Kepemimpinan Tata Usaha TU Penjualan TU Jasa TU Pertanian Produksi 0 Lainnya Wanita Pria 5

6 Penduduk yang Bekerja (2007) JENIS KELAMIN Jenis Pekerjaan Utama Jumlah Pria Wanita Tenaga Profesional Kepemimpinan Tata Usaha TU Penjualan TU Jasa TU Pertanian Produksi Lainnya Jumlah

7 Rata-rata Upah (2006) Pertanian Pertambangan Industri Listrik Bangunan Perdagangan Angkutan Keuangan Wanita Pria Jasa 7 Wanita Pria

8 Rata-rata Upah (2006) SEKTOR LAPANGAN PEKERJAAN PRIA WANITA 1 Pertanian, Kehutanan, Perburuan, Perikanan (Agriculture,Forestry,Hunting,Fishery) Pertambangan, Penggalian (Mining and Quarrying) Industri Pengolahan (Manufacturing Industries) Listrik, gas dan air (Electricity, Gaz and Water) Bangunan (Construction) Perdagangan Besar, Rumah Makan & Hotel (Wholesale Trade,Restaurant & Hotel) Angkutan, Pergudangan dan Komunikasi (Transportation,Storage & Communication) Keuangan, Asuransi,Jasa Perusahaan (Financing,Insurance,Business Services) Jasa Kemasyarakatan (Public Services) Rata-rata

9 Penduduk yang Bekerja Berdasarkan Jam Kerja Tahun <1 jam 1-35 jam >35 jam Pria Wanita Wanita Pria

10 Konsep Diskriminasi 10

11 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

12 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

13 The Discrimination Coefficient 13

14 The Discrimination Coefficient Lauched for the first time by Gary S. Becker The Economics of Discrimination (1957) 14

15 The Discrimination Coefficient Basic Concept : Taste Discrimination Assumption Two types of workers : White workers : wage w W Black workers : wage w B 15

16 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 w B (1 + d), where d is positive number and is called : The Discrimination Coefficient 16

17 The Discrimination Coefficient Suppose that w B = $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

18 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 w B (1 n ) 18

19 Labor Market Discrimination Analysis FIRM Non Discrim inatory Firm Discrim inatory Firm W = VM P W hite Firm againts Black Black Firm againts Black Discrim ination C oeffic ient is very High Discrim ination Coefficient is relatively Low 19

20 Employer Discrimination 20

21 Skill and Labor Market Outcomes (2001) WHITE BLACK HISPANIC Male Female Male Female Male Female Highschool Graduate or more (Percent) Bachelor s degree or more (Percent) Labor Force Participation Rate (Percent) Unemployment Rate (Percent) Annual Earnings (in $1,000) Annual Earnings (Full Time)

22 Fact : White Wage > Black Wage 22

23 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 ( MP E ) 23

24 Employer Discrimination Production function: q = f ( E W + E B ) q E W E B firm s output number of white workers hired number of black workers hired 24

25 Employment in a non Discriminatory Firm 25

26 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 w W > w B, a firms that doesn t discriminate will hire black workers up to the point where 26 w B = VMP E * B E

27 The Employment Decision of a Firm That Does Not Discriminate Dollar VMP E Black workers wage is less than wb = VMPE white wage? How many worker will be hired..?? w B * E B Employment 27

28 Employment in a Discriminatory Firm 28

29 Employment in a Discriminatory Firm The employer act as if black wage is not w B, but instead equal to w B (1 + d). Where d is discrimination coefficient. The employer s hiring decision based on a comparison w W and w B (1 + d) Hire only blacks if w B (1 + d) < w W Hire only white if w B (1 + d) > w W 29

30 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

31 Employment in a Discriminatory Firm WHITE FIRM The white firm hires workers up to the point where : w W = VMP E Assumption : w W > W B The white firm is paying an excessively high price for its workers and hires * relatively few workers ( ) E W 31

32 The Employment Decision of a Prejudiced Firm Dollar w W White Firm VMP E * E W Employment 32

33 Employment in a Discriminatory Firm BLACK FIRM Non discriminatory firms : * w B = VMP E E B If discrimination coefficient d 0 : Price of Black Labor w B ( 1 + d 0 ) Amount of Labor hired : w B ( 1 + d 0 ) = VMP E 33

34 Employment in a Discriminatory Firm BLACK FIRM The number of black workers hired, therefore, is smaller for firms that have larger discrimination coefficient. 34

35 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

36 Discrimination and Profits 36

37 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

38 Profit and Discrimination Coefficient Dollar max Max Profit w Black Firm 0 38 White Firm dw Discrimination Coefficient

39 Discrimination and Profits The Most Profitable Firm Zero Discrimination 39

40 Labor Marker Equilibrium 40

41 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

42 Labor Market Equilibrium Black-White Wage Ratio S ( wb / ww )' D 1 R ( wb / ww ) * D 0 42 N Black Employment

43 Employee Discrimination 43

44 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

45 Customer Discrimination 45

46 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

47 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 % ,6 % Perbedaan 47 > 50 % BLACK CUSTOMER

48 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

49 Measuring Discrimination 49

50 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

51 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

52 Measuring Discrimination Model Regresi : W WM WF M M s M F F s F 52

53 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

54 Trend in Female-Male Wage Ratio (USA ) Year

55 Global Gender Gap 2007 INDONESIA Rank 2007 : 81 Score 2007 : ( 1 = equality ) Rank 2006 : 68 Score 2007 : ( 1 = equality ) 55

56 Global Gender Gap

57 Global Gender Gap 2007 INDONESIA 57

58 Terima kasih 58