Sharing Development Solutions for an Emerging Indonesia
Increases in inequality are partly driven by increase
in skill premium
Percent
Jobs are requiring more education...
Employment by Education Level
100
80
60
40
40
20
0
2002
2013
...meaning workers with more education
receive higher wages
Percent
120
Worker Wage
Household Consumption
Premium
Premium
100
■Tertiary
80
■SMA
60
SMP
40
■SD or less
20
0
SMP
SMA Tertiary
2003
SMP
SMA Tertiary
2010
LHS: Source: Sakernas, World Bank calculations. RHS: Worker wage premium represents how much higher wages workers at each level of
education receive compared with workers with primary or less education, controlling for experience, gender, work status, location and other
factors. Household consumption premium represents the same thing for per capita consumption and head of household's education. Source:
Sakernas, Susenas and World Bank calculations.
THE WORLD BANK I BANK DUNIA
Sharing Development Solutions
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