Worker Transition Across Formal and Informal Sectors: A Panel Data Analysis in Indonesia

Asian Economic and Financial Review

article

Lilik Sugiharti¹  Neny Aditina²  Miguel Angel Esquivias¹ 

[1]Universitas Airlangga

[2]Statistics Indonesia

关键词: Decent work;    Entrepreneurship;    Female entrepreneurship;    Formal sector;    Informal sector;    Job creation;    Labor market;    Labor transition;    Multinomial logistic regression;    Professional learning.;   

DOI  :  10.55493/5002.v12i11.4635

学科分类：社会科学、人文和艺术（综合）

来源: Asian Economic and Social Society

【 摘 要 】

This paper examines the transition of workers between formal and informal jobs based on socio-demographic and employment characteristics. The study identifies factors that increase the likelihood of workers remaining in formal employment. The multinomial logistic regression model is incorporated to analyze labor transitions based on data from Indonesia's National Labor Force Survey (Sakernas) of 2017–2018. The findings show that 56.34% of workers were in informal activities and 30.58% were in formal jobs. Workers who transition from informal to formal jobs made up 6.84%, while 6.24% transitioned from formal to informal occupations. Informal workers were reluctant to move to the formal sector. Workers who are younger, unmarried, male, living in urban areas, and more educated are more likely to relocate from the informal to the formal sector. Work experience and participation in certified training can help shift workers to the formal sector, especially within the manufacturing industry.

【 授权许可】

CC BY