Minimum wage differentials and commuting across districts
This study examined the effect of cross-district minimum wage differentials on workers' commuting probabilities in the pre-pandemic era of the Greater Jakarta Metropolitan Area (Jabodetabek). We found that minimum wages in cross-border districts, along with differentials between home and neighboring district minimum wages, significantly affect worker commuting probabilities. These findings highlighted important methodological considerations when analyzing labor survey data, as such data typically reflect workers' residential locations rather than their employment sites.
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