Disability and gendered earnings gaps in Indonesia

Disability has the potential to exacerbate existing vulnerabilities, and previous research has found adverse labour market consequences for people with disabilities. However, there is limited research from developing countries on how the intersectionality between disability and gender may be associated with gendered earnings gaps for persons with disabilities. This paper empirically analyses whether the intersectionality of gender and disability is associated with gendered earnings gaps in Indonesia.

Our analysis is based on nationally representative data from Indonesia's National Labour Market Survey (SAKERNAS) from 2016 to 2023, covering a sample of nearly 2 million individuals. The survey included detailed information on the labour market, socio-economic, and demographic outcomes for persons with disabilities. The dataset had information on the incidence and the types of disability. Multivariate regression analyses were used to examine: (i) if there is any evidence of an earnings gap between persons with disabilities and non-disabled people, and (ii) if the intersectionality between disability and gender is associated with lower earnings for women who are disabled, relative to men who are disabled and those who are not disabled.

The earnings gap between persons with disabilities and those with no disability has increased over the period 2016-2023, using either of our disability measures. There is a significant gender earnings gap, with the earnings of female workers being around 30% lower than those of male workers. The intersectionality of gender and disability is associated with lower earnings for female workers.

The study shows that despite legislative reform, disability-related earnings penalties have persisted and, in some cases, worsened. Moreover, gender disparities in earnings remain intrinsic, irrespective of an individual's disability status.