Persistence of Labor Market Disparities in Indonesia: An Analysis of Regional Productivity and Wage Gaps, 2018–2023
Persistensi Disparitas Pasar Tenaga Kerja di Indonesia: Analisis Kesenjangan Produktivitas dan Upah Regional 2018–2023
DOI:
https://doi.org/10.57032/jsd.v6i1.339Kata Kunci:
Labor Market Disparity, Regional Productivity, Wage Gap, Development Economics, Wage PolicyAbstrak
Amid Indonesia's ambition to escape the middle-income trap, the anomaly between productivity growth and wage welfare at the regional level has become a critical structural barrier requiring profound attention. This disparity is not merely a statistical issue but a socio-economic reality that determines the future stability and resilience of the national economy. This study aims to analyze the persistence of labor market disparities in Indonesia, focusing on the dynamics of regional productivity and wages during the 2018–2023 period. Adopting a quantitative descriptive-comparative approach using secondary data from the Central Bureau of Statistics across 34 provinces, this research examines the elasticity of wages relative to productivity in leading sectors. The results indicate persistent inequalities between Java and non-Java regions, where regional wage growth often lags behind productivity surges, particularly during the post-pandemic economic recovery phase. This phenomenon suggests that the wage-productivity transmission mechanism is still hindered by wage policies that are not yet fully adaptive to local performance realities and agglomeration advantages. Theoretically, this research contributes to the labor economics literature by modeling the wage-productivity interaction within the economic transformation of a developing nation. Practically, this study formulates strategic recommendations for policymakers to design performance-based regional wage systems to narrow inter-regional economic gaps and create a more inclusive labor market across Indonesia.
Referensi
Adebogun, O. B., Josephine, O. C., Daramola, T., & Ridwan, M. (2024). Human Capital, Brain Drain Syndrome and Its Implication on Socio-Economic Development in Nigeria: A Study of Lagos State (2015-2023). Economit Journal: Scientific Journal of Accountancy, Management and Finance, 4(4), 218–230.
Agusalim, L., & Novianti, T. (2023). Pembuktian Empiris Teori Upah Efisiensi di Indonesia. Jurnal Ekonomi Dan Kebijakan Publik, 14(2), 119–132.
Aiyar, M. S., Chen, M. J., Ebeke, C., Ebeke, M. C. H., Garcia-Saltos, M. R., Gudmundsson, T., Ilyina, M. A., Kangur, M. A., Kunaratskul, T., & Rodriguez, M. S. L. (2023). Geo-economic fragmentation and the future of multilateralism. International Monetary Fund.
Akyıldız, İ. E., Başkol, M. O., & Eryiğit, K. Y. (2025). The relationship between brain drain and human capital: evidence from Turkey. International Journal of Manpower, 46(8), 1546–1562. https://doi.org/10.1108/IJM-08-2024-0566
Alataş, S. (2023). Revisiting the Solow growth model: new empirical evidence on the convergence debate. Journal of Economic and Administrative Sciences, 39(4), 801–817. https://doi.org/10.1108/JEAS-02-2021-0035
Anas, T., Hill, H., Narjoko, D., & Putra, C. T. (2022). The Indonesian Economy in Turbulent Times. Bulletin of Indonesian Economic Studies, 58(3), 241–271. https://doi.org/10.1080/00074918.2022.2133344
Aritenang, A. F., & Chandramidi, A. N. (2022). The spatial effects of fiscal decentralization on regional convergence: the case of regions in indonesia. GeoJournal, 88(2), 2011–2030. https://doi.org/10.1007/s10708-022-10724-2
Avana, N., Nerita, S., Rurisman, R., Gistituati, N., & Rusdinal, R. (2024). Analisis kebijakan pendidikan terkait implementasi pendidikan vokasi dan pelatihan vokasi. Naturalistic: Jurnal Kajian Dan Penelitian Pendidikan Dan Pembelajaran, 8(2), 322–338.
Behrens, K., & Thisse, J.-F. (2007). Regional economics: A new economic geography perspective. Regional Science and Urban Economics, 37(4), 457–465. https://doi.org/10.1016/j.regsciurbeco.2006.10.001
Berger, D., Herkenhoff, K., & Mongey, S. (2025). Minimum Wages, Efficiency, and Welfare. Econometrica, 93(1), 265–301. https://doi.org/10.3982/ECTA21466
Bernedo Del Carpio, M., & Patrick, C. (2021). Agglomeration and informality: Evidence from Peruvian establishments. Journal of Regional Science, 61(2), 442–471. https://doi.org/10.1111/jors.12515
Brajannoto, D., Amelia, S., Safitri, S., & Pratama, R. R. A. (2021). Pengaruh Pertumbuhan Ekonomi dan Perubahan Struktur Ekonomi Terhadap Kemiskinan. Salam (Islamic Economics Journal), 2(2), 1–16.
Chandra, R. (2022). Paul Krugman, New Trade Theory and New Economic Geography. In R. Chandra (Ed.), Endogenous Growth in Historical Perspective: From Adam Smith to Paul Romer (pp. 221–249). Springer International Publishing. https://doi.org/10.1007/978-3-030-83761-7_8
Damanik, F. H. S., Sirait, H., Minarsi, A., Abae, I., Hendratni, T. W., & Purba, J. H. V. (2025). Transformasi Ekonomi: Inovasi dan Pertumbuhan Ekonomi Global di Abad ke-21. Star Digital Publishing.
Ellerman, D. (2021). Marginal Productivity Theory. In D. Ellerman (Ed.), Putting Jurisprudence Back Into Economics: What is Really Wrong With Today’s Neoclassical Theory (pp. 89–118). Springer International Publishing. https://doi.org/10.1007/978-3-030-76096-0_5
Eriksson, C., Lindén, J., & Papahristodoulou, C. (2023). Human capital, innovation, and growth. International Journal of Economic Theory, 19(2), 343–369. https://doi.org/10.1111/ijet.12346
Erlström, A., Grillitsch, M., & Hall, O. (2022). The geography of connectivity: a review of mobile positioning data for economic geography. Journal of Geographical Systems, 24(4), 679–707. https://doi.org/10.1007/s10109-022-00388-4
Estede, S., Rustiyana, R., Lestari, E. K., Abae, I., Kusumastuti, S. Y., Muta’ali, L., Anitasari, M., Dwipatna, I. M. J. A., Juansa, A., & Zulkarnaen, A. (2025). Ekonomi Pembangunan Daerah: Konsep, Strategi dan Inovasi. Star Digital Publishing.
Falah, A. I., & Hadna, A. H. (2022). Problematika pendidikan masa pandemi di Indonesia pada daerah 3-T (Terluar, tertinggal, dan terdepan). Jurnal Pendidikan Dan Kebudayaan, 7(2), 164–185.
Fara Dina. (2024). Kontribusi dan Elastisitas Subsektor dalam Sektor Pertanian di Indonesia. Juremi: Jurnal Riset Ekonomi, 4(3), 711–720. https://doi.org/10.53625/juremi.v4i3.8918
Farrokhi, F. (2021). Skill, agglomeration, and inequality in the spatial economy. International Economic Review, 62(2), 671–721. https://doi.org/10.1111/iere.12514
Firdaus, A., Hidayatullah, S., Saksana, J. C., Susanti, D., & Miftahorrozi, M. (2022). Leading Sectors among the Provinces of Java Island. Jurnal Manajemen Bisnis Dan Keuangan, 3(2), 150–160.
Guliyeva, A., Faminskaya, M. V, & Potekhina, E. V. (2023). Dynamic Interaction Between Human Capital Accumulation and Economic Growth. In V. Kumar, E. Kuzmin, W.-B. Zhang, & Y. Lavrikova (Eds.), Consequences of Social Transformation for Economic Theory (pp. 63–74). Springer International Publishing.
Hendarmin, H., & Wahyudi, S. T. (2023). Structural Transformation Patterns and Factors That Influenced: The Case In Indonesia. Jurnal Economia, 19(1), 112–126. https://doi.org/10.21831/economia.v19i1.36818
Hermawan, M. S., Judijanto, L., Kusumastuti, S. Y., Purnamaningrum, T. K., Suparyati, A., Pracoyo, A., Prabandari, A. I., Atmaja, U., & Ilma, A. F. N. (2025). Pengantar Ekonomi Indonesia: Perkembangan dan Tantangan Perekonomian dalam Rangka Percepatan Pembangunan Nasional Menuju Indonesia Emas 2045. PT. Sonpedia Publishing Indonesia.
Hornok, C., & Raeskyesa, D. G. S. (2024). Economic zones and local income inequality: Evidence from Indonesia. The Journal of Economic Inequality, 22(1), 69–100. https://doi.org/10.1007/s10888-023-09581-x
Hovhannisyan, S., Montalva-Talledo, V., Remick, T., Rodríguez-Castelán, C., & Stamm, K. (2022). Global job quality: Evidence from wage employment across developing countries. IZA Discussion Papers.
Imbran, H. (2022). Analisis Transformasi Struktur Perekonomian Sektor Primer, Sektor Sekunder, Dan Sektor Tersier Kabupaten Bone Bolango. JPPE: Jurnal Perencanaan & Pengembangan Ekonomi, 5(2), 90.
Indrayani, S., & Muzan, A. (2025). Kesenjangan upah dan keadilan sosial terhadap sistem pengupahan di indonesia. Al-Muzdahir: Jurnal Ekonomi Syariah, 7(1), 98–110.
Kamal, M., & Fatima, A. (2023). Structural transformation and political economy: A new approach to inclusive growth. PLOS ONE, 18(8), e0283731. https://doi.org/10.1371/journal.pone.0283731
Kanitsar, G. (2022). The Inequality-Trust Nexus Revisited: At What Level of Aggregation Does Income Inequality Matter for Social Trust? Social Indicators Research, 163(1), 171–195. https://doi.org/10.1007/s11205-022-02894-w
Leasiwal, T. C., Payapo, R. W., Oppier, H., & Setya, D. (2022). Analysis of income disparities between regions in the western region of Indonesia and the eastern region of Indonesia. International Journal of Science and Society, 4(4), 638–656.
Liu, M., Ge, Y., Hu, S., & Hao, H. (2023). The Spatial Effects of Regional Poverty: Spatial Dependence, Spatial Heterogeneity and Scale Effects. ISPRS International Journal of Geo-Information, 12(12), 501. https://doi.org/10.3390/ijgi12120501
Manning, C. (2021). The labour market shock and policy responses to the coronavirus pandemic. Economic Dimensions of COVID-19 in Indonesia: Responding to the Crisis, 94–113.
Meekes, J., & Hassink, W. H. J. (2023). Endogenous local labour markets, regional aggregation and agglomeration economies. Regional Studies, 57(1), 13–25. https://doi.org/10.1080/00343404.2022.2050893
Nuramalina, L., Zulfa, S. L., & Ath-Thariq, M. I. (2025). Pengaruh Tingkat Setengah Pengangguran TPAK IPM Terhadap PDRB di Indonesia Tahun 2018-2023. Menulis: Jurnal Penelitian Nusantara, 1(12), 612–621.
Nurdina, W. (2021). Infrastructure and Income Inequality in Indonesia: 2009-2017. The Journal of Indonesia Sustainable Development Planning, 2(2), 129–144. https://doi.org/10.46456/jisdep.v2i2.132
Prettner, K. (2023). Stagnant wages in the face of rising labor productivity: The potential role of industrial robots. Finance Research Letters, 58, 104687. https://doi.org/10.1016/j.frl.2023.104687
Ratry, S. A., & Astuti, D. (2025). Penerapan Manajemen Strategi Dalam Peningkatan Daya Saing Bisnis Lokal. Musytari: Jurnal Manajemen, Akuntansi, Dan Ekonomi, 17(1), 71–80.
Sanjaya, I. M., & Setyanto, A. R. (2025). Pengaruh Tingkat Urbanisasi dan Upah Minimum Regional (UMR) terhadap Aglomerasi Industri Manufaktur di Pulau Jawa. Jurnal Intelek Dan Cendikiawan Nusantara, 2(6), 11715–11729.
Santos-Marquez, F., Gunawan, A. B., & Mendez, C. (2022). Regional income disparities, distributional convergence, and spatial effects: evidence from Indonesian regions 2010–2017. GeoJournal, 87(3), 2373–2391. https://doi.org/10.1007/s10708-021-10377-7
Singh, R. K., Agrawal, S., & Modgil, S. (2022). Developing human capital 4.0 in emerging economies: an industry 4.0 perspective. International Journal of Manpower, 43(2), 286–309. https://doi.org/10.1108/IJM-03-2021-0159
Srisaparmi, S., Frinaldi, A., Magriasti, L., & Naldi, H. (2025). Problematika dan Tantangan Desentralisasi di Indonesia: Kajian Literatur Review Pasca Reformasi. Jurnal Manajemen Dan Ilmu Administrasi Publik (JMIAP), 7(2), 213–220.
Susilowati, A. P. E., Rachmawati, R., & Rijanta, R. (2024). Does the digital divide matter? Comparison between Java and the rest of Indonesia in developing smart villages. Human Geographies, 18(2), 1–14.
Thawley, C., Crystallin, M., & Verico, K. (2024). Towards a Higher Growth Path for Indonesia. Bulletin of Indonesian Economic Studies, 60(3), 247–282. https://doi.org/10.1080/00074918.2024.2432035
Tirkaso, W., & Hailu, A. (2022). Does neighborhood matter? Spatial proximity and farmers’ technical efficiency. Agricultural Economics, 53(3), 374–386. https://doi.org/10.1111/agec.12702
Ulani, S. Y., & Aprirachman, R. (2025). Post-Pandemic Economic Recovery in Indonesia: A Systematic Literature Review on Key Drivers, Challenges, and Policy Implications. ECOBISMA (JURNAL EKONOMI, BISNIS DAN MANAJEMEN), 12(2), 196–209. https://doi.org/10.36987/ecobi.v12i2.7148
Yadin, Y., Ibrahim, M. B. H., Irawan, A., Akbar, M. A., & Yendra, Y. (2024). Labor Mobility and Wage Dynamics: Understanding the Interplay of Factors in Modern Labor Economics. Advances in Human Resource Management Research, 2(2). https://doi.org/10.60079/ahrmr.v2i2.186
Unduhan
Diterbitkan
Terbitan
Bagian
Citation Check
Lisensi
Hak Cipta (c) 2026 Erin Rismaya, Ayus Ahmad Yusuf
Artikel ini berlisensi Creative Commons Attribution 4.0 International License.
