Wages Difference Analysis on Internal Auditors From Gender Perspective

Abstract

Previous studies show the existence of wage differentials between male and female auditors. In most cases, female auditors receive lower wage as compared to male auditors. The main objectives of this study are to identify the factors that determine gender wage level and gender wage differentials among internal auditors and examine the existence of discrimination This study used OaxacaWage Decomposition Model

to identify factors that determine gender wage level

and

gender wage differentials.. A total of 58 private auditors were selected as respondents in this study. Among them, 33 were males and 25 were females. The study was conducted in Central Java and Jogyakarta, Indonesia. The study shows the wage differentials between males and females internal Males auditors have more wages over the females. The auditors status and auditor position are the factors that determine gender wage level. Discrimination does exist and it is an important determinant factor for gender wage differentials. It is 0.105153 or 31.84% contributes to wages differentials. Regardless of auditor`s gender perspective. The researcher proposes for the firms should be fairly in assigning jobs to their auditors and also provide the proper reward system to enhance auditors’ careers. Government on the other hand should formulate policies that can facilitate and encourage the professional women to participate in labor market. The future research should develop the other wages discrimination models to determine the best model for wages discrimination in auditor profession in Indonesia