Disability and gendered earnings gaps in Indonesia

Area of Science:

• Socioeconomics
• Labor Economics
• Disability Studies

Background:

• Disability can worsen existing vulnerabilities, leading to adverse labor market outcomes.
• Limited research exists on the intersection of disability and gender in developing countries regarding earnings gaps.

Purpose of the Study:

• To empirically analyze the association between the intersectionality of gender and disability and gendered earnings gaps in Indonesia.
• To investigate if disability status and the intersection of gender and disability impact earnings.

Main Methods:

• Utilized nationally representative data from Indonesia's National Labour Market Survey (SAKERNAS) from 2016-2023.
• Employed multivariate regression analyses on a sample of nearly 2 million individuals, including data on disability incidence and types.
• Examined earnings gaps between disabled and non-disabled individuals and the specific impact on disabled women relative to disabled and non-disabled men.

Main Results:

• The earnings gap between persons with disabilities and those without disabilities widened between 2016-2023.
• A significant gender earnings gap was observed, with female workers earning approximately 30% less than male workers.
• The intersection of gender and disability was associated with lower earnings for female workers.

Conclusions:

• Disability-related earnings penalties persist and have intensified, despite legislative reforms.
• Gender disparities in earnings are intrinsic and remain regardless of an individual's disability status.