Oaxaca-Blinder decomposition highlights that gender wage gap is influenced by individual characteristics and discrimination in Java, indicating a need for better labor policies.
Wage disparity between men and women remains a prominent structural issue, even though Java Island serves as the center of national economic growth. This study aims to analyze the determinants of the gender wage gap in Java using the Oaxaca-Blinder decomposition approach through regression methods within the framework of Mincer’s human capital theory. The data is sourced from the 2024 National Labor Force Survey (Sakernas). The decomposition results indicate that the disparity is not only driven by differences in individual characteristics (explained component) but also by unobserved discriminatory factors (unexplained component). These findings highlight the urgency of formulating more inclusive and gender-responsive labor policies to reduce structural inequalities in the labor market, particularly in economically active regions such as Java Island.
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Putri et al. (2025) studied this question.
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