INTERNASIONAL DEFFERENCES IN THE INCOME DISTRIBUTION

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Suharto Kurniawan
7 tahun lalu
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1 THE WAGE STRUCTURE The Supply and Demand for workers and skill determine the structure of wages in the economy the rewards for work and human capital invesments. Dispersion and inequality in the allocation of rewards among workers : There exist productivity differences among workers Differences unequal wage distribution The rate of return to skill will vary across labor markets and overtime, responding to changes in the supply and demand for skill Rewards unequal wage distribution The Earning Distribution INTERNASIONAL DEFFERENCES IN THE INCOME DISTRIBUTION Country Australia Canada France Germany India United Kingdom United States Percent of total income Bottom 10% households Top 10% households 2,5 24,8 2,8 23,8 2,5 24,9 3,7 22,6 4,1 25,0 2,4 27,7 1,5 28,5 The Wage Structure - 1

2 INCOME RATIO OF HIGHEST 20% TO LOWEST 20% Country Year Income Ratio China Hong Kong Korea Indonesia Malaysia Singapore Papua New Guinea ,9 % 9,6% 5,3% 5,2% 7,1% 9,8% 12,6% Terdapat perbedaan tingkat upah yang disebabkan : Perbedaan human capital Young workers terus me-upgarade skill 0,18 THE WAGE DISTRIBUTION IN THE UNITED STATES (1997) 0,16 0,14 Frequency 0,12 0,10 0,08 0,06 0,04 0,02 0, Weekly Earnings Keterangan : There is a lot of wage dispersion across workers Wage distribution is not symmetrical (bulk of worker earn relatively low wages) The Wage Structure - 2

3 INCOME DISTRIBUTION WHEN WORKERS DIFFER IN ABILITY Rate of Interest MRR L MRR' MRR H r H L H' H H Human Capital MRR Marginal Rate of Return Wage high-ability worker lebih tinggi karena membutuhkan lebih banyak human capital. Human capital : unique set of ability and acquired skills Changes in The Wage Structure CHANGE IN THE REAL WEEKLY WAGES FOR FULL-TIME WORKERS ( ) All Workers Sex : Men Women GROUP PERCENT CHANGE IN REAL WAGE 6,8 % 0,9 % 17,1 % Education : less than high school High school Some Colege College Graduate Experience : Less than 5 years Between 25 and 35 years -4,4 % 5,7 % 4,5 % 25,1% -5,2 % 6,6 % The Wage Structure - 3

4 Wanita mengalami peningkatan tinggi karena wanita mulai aktif masuk ke labor market. Terdapat penurunan pada worker dengan pendidikan less than high school dan pengalaman kurang dari 5 tahun Wage differential between College Graduates and High School Graduates TREND IN THE EDUCATIONAL WAGE GAP Percent Year TREND IN THE WAGE GAP BETWEEN EXPERIENCED WORKERS AND NEW LABOR MARKET ENTRANTS (FOR HIGH SCHOOL GRADUATES) 70 Percent Wage Differential Year The Wage Structure - 4

5 Why did Wage Inequaly Increase? Relative Wage of Skilled Workers S 0 S 1 r r 1 0 A C B D 0 D 1 P 0 P 1 Relative Employment of Skilled Workers Asumsi : Terdapat 2 jenis oleh worker : Skilled dan Unskilled Wage ratio between skilled and Unskilled r Ratio of number of skilled to the number of unskilled p Demand curve berbentuk DOWNWARD SLOPING karena semakin besar wage gap maka employer semakin sedikit merekrut skilled worker. Supply curve INELASTIC karena tidak memperhatikan wage gap antara skilled dan unskilled. Kenaikan wage gap : Supply bergeser ke kiri skilled worker turun Demand bergeser ke kanan demand naik Supply curve S 0 Equilibrium A Supply curve S 1 Equilibrium B, menyebbakan relative wage skilled worker turun Demand curve bergeser D 1 Equilibrium C The Wage Structure - 5

6 Inequality Across Generations Earnings of Children THE INTERGENERATIONAL LINK IN SKILLS A, Slope = 1 C, Slope is between 0 and 1 B, Slope = 0 45' Earnings of Parents PARENTS dapat berperan dominan dalam menentukan dan membiayai proses pembentukan human capital anaknya. Hubungan antara skill of parents dan children disebut The Rate of Socila Mobility Slope : Intergenerational Correlation Slope = 1 (Titik A) bila perbedaan earning antara 2 parents sebesar $100 diikuti perbedaan earning anak-anak mereka sebesar $ 100 pula. Slope = 0,5 (Titik C) perbedaan earning antara 2 parents sebesar $100 diikuti perbedaan earning anak-anak mereka sebesar $50 Slope = 0 (Titik B) tidak terdapat hubungan Most empirical studies less than 1 The Wage Structure - 6

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