Seminar on Gender, Education Mismatch and Labor Market in Indonesia

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Being aware on the stricter labor market, a high youth unemployment rate, a low well-match education and job along with the Indonesian labor market dynamics, the SDGs center hosts a seminar titled “Gender, Education Mismatch and Labor Market in Indonesia”, on 14 August at the Executive Lounge, Universitas Padjadjaran. Two resource persons deliver comprehensive presentations about the Indonesia’s labor market. Dr. Purnagunawan, labor economist from the CEDS UNPAD and also member of TNP2K provides a general picture about the latest labor market condition. He emphasizes on challenges faced by the country. From the input side, education and training institutions are viewed as producing basic skills needed by labor. Therefore the supply of labor market still dominates by low education workers. The other situation is flawed structural transformation of labor as the increasing absorption of employment in services occurs particularly in low productivity sector. He also put attention on policy to continuously upgrade workers’ skills. Dr. Diana Contreras-Suarez, our guest speaker from The Melbourne Institute, University of Melbourne focuses on education-job mismatch and its effect on gender wage differentials among formal workers tertiary graduates in Indonesia. The presentation is based on a joint-research funded by ANU-SMERU research grant 2017. Dr. Suarez highlights that the incidence of mismatch is categorized as high, as the share of well-matched employment is less than one fourth of the observation. The gender wage differentials occurs, mainly because of endowment factors. Further, she asserts that educational-job mismatch contribution to wage gap between male and female is significant.