Andryan Setyadharma, FEB Ilmu Ekonomi (2021) Women in Labour Force and Income Inequality: Case of Indonesia. In: 8 th INCOMaR, Selangor Malaysia.

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Abstract

Working women clearly contribute to the increase of family income. However, working women’s contribution to overall income inequality is still not clear. Since the income gap between rich and poor remains expanding, the analysis of the impacts of women’s labour force participation on income inequality is important. Therefore, the purpose of this study is to examine the effect of the participation of women in the labour force on income inequality in Indonesia. This study utilizes panel data from 33 provinces in Indonesia during 2012 to 2018. The result suggests that higher women’s participation in the labour force is resulting in lower income inequality in Indonesia. It shows that higher participation of women in the workforce outside the home means additional income for family for a better welfare. Therefore, the practical implication should be focus on creating more jobs opportunities for women and providing training that leads women to a better employment.

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