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THE EFFECTS OF CHANGES IN MINIMUM WAGE ON EMPLOYMENT IN THE COVERED AND UNCOVERED SECTORS IN INDONESIA Devanto Shasta Pratomo
Journal of Indonesian Economy and Business (JIEB) Vol 25, No 3 (2010): September
Publisher : Faculty of Economics and Business, Universitas Gadjah Mada

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (389.099 KB) | DOI: 10.22146/jieb.6284

Abstract

This study examines the effects of changes in minimum wage on employment in the covered and uncovered sectors in Indonesia using an individual micro-level data set from1989 to 2003. Since the Indonesian Labor Force Survey data are not a panel, this study applies pooled cross-sectional time-series methodology to explore the impact of theminimum wage across individual workers. All of the equations are analyzed separately in urban and rural labor markets, as well as the male and female labor market. The results suggest that an increase in minimum wage is more likely to decrease the covered sector employment and to increase the uncovered sector employment. These results also indicate a displacement effect from the covered sector to the uncovered sector, as suggested by the two-sector model. In addition, this study found the displacement effect is stronger for women, indicating that female workers are the more likely to be hurt as the result of an increase in minimum wage. Compared to urban areas, the effects in rural areas are somewhat lower, indicating that minimum wage is less binding, given the dominance of thetraditional agriculture sector.Keywords: Minimum Wage, Employment, Covered Sector, Uncovered Sector
Information and communication technology, inequality change and regional development in Indonesia Chusnul Faizah; Kyohei Yamada; Devanto Shasta Pratomo
JOURNAL OF SOCIOECONOMICS AND DEVELOPMENT Vol 4, No 2 (2021): October
Publisher : Publisher of Widyagama University of Malang (UWG Press)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31328/jsed.v4i2.2669

Abstract

Although the advancement of technology provides numerous opportunities to boost economic growth and development, equal distribution may not be guaranteed. Thus, this study seeks further elaboration as to whether ICT development has a role to play in the inequality in Indonesia. Using municipal level data from 2018, the study provides both linear and non-linear models to be estimated using OLS and 2SLS. Major findings include: (i) the availability of basic ICT infrastructure is strongly linked to the reduction of inequality; (ii) the actual ICT use is positively associated with inequality, albeit at a diminishing rate, revealing a non-linear relationship similar to Kuznets' curve; (iii) the ICT skill variable comprising the education level has direct correlation with ICT use instead of inequality, with an additional score on ICT skill being associated with an increase in ICT use; (iv) the relationship between ICT use and inequality differed depending on the level of economic development, with lower-income regions experiencing the inverted U-shaped relationship as in the original Kuznets curve and higher-income regions experiencing the U-shaped curve.JEL Classification:  D63; I24; O10
Analisis kemiskinan pada rumah tangga di Jawa Timur melalui pendekatan multidimensi dan moneter Abdus Salam; Devanto Shasta Pratomo; Putu Mahardika Adi Saputra
Jurnal Kependudukan Indonesia Vol 16, No 2 (2021)
Publisher : Research Centre for Population, National Research and Innovation Agency (BRIN)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.14203/jki.v16i2.480

Abstract

The first goal of the Sustainable Development Goals (SDGs) is to eradicate poverty in quantity and reduce poverty in various forms. The problem of poverty is often seen as a unidimensional problem. However, the measurement of poverty which uses only a monetary point of view is not enough to explain the deprivation experienced by the poor. Using the 2018 Indonesian National Socio-economic Survey (Susenas), this study analyzes the effect of household socioeconomic characteristics on multidimensional poverty status. Socioeconomic factors do not always have the same effect on multidimensional poverty or monetary poverty. The status of formal workers is only significant in monetary poverty. Regional topography has a strong influence on multidimensional poverty alone. Non-formal credit only affects monetary poverty and its direction is positive, whereas the distance to a public health centre (Puskesmas) only affects households that experience poverty and multidimensional poverty. Government efforts in reducing poverty may include re-promotion of family planning programs, expansion of Program Keluarga Harapan (PKH) services for households with disabilities, promotion of non-formal education programs in pursuit of education equivalency programmes (Kejar Paket A/B/C), as well as improvement of financial access to the community, especially to the poor through formal institutions, asphalt village road infrastructure, and improved health services in Puskesmas dan hospitalization facilities
Expanding Middle Class in Indonesia Devanto Shasta Pratomo; Wildan Syafitri; Clarissa Sekar Anindya
The Journal of Indonesia Sustainable Development Planning Vol 1 No 3 (2020): December 2020
Publisher : Pusbindiklatren Bappenas

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.46456/jisdep.v1i3.103

Abstract

The Indonesian economy has been one of the promising economies, with an average annual economic growth of about 5% in the last decade. With income per capita US$ 4050 as of 2019, Indonesia is now moving to attain upper-middle-income country status. Indonesia escaped from the lower-middle-income trap that the country has faced since 1985 by improving its human capital through increased attention to education and reduction in poverty. Alongside a significant poverty reduction, the middle class or middle-income population has been significantly growing. According to the National Socio-Economic Survey (SUSENAS), the middle-class household grew from only 9% in 1993 to more than 20% in 2019. The middle class also works as an engine for growth, supporting nearly half of total national consumption. They are more likely of having better human capital, work as white-collar workers, and mostly living in urban areas. Due to the greater education and skills most of those in the middle class, have greater access to working in the formal sector jobs, and some are increasingly running productive business or entrepreneur which drives growth and creating jobs for others (World Bank, 2019).
Blue Collar Young Worker Transition to NEET During Covid 19 Pandemic: Evidence from Indonesia FX Gugus Febri Putranto; Devanto Shasta Pratomo; M Pudjihardjo
Journal of International Conference Proceedings Vol 5, No 4 (2022): FEBIC International Conference Proceeding
Publisher : AIBPM Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32535/jicp.v5i4.1911

Abstract

Young and low-skilled workers are the most affected groups due to the labor market disruption caused by the pandemic. One of the impacts is the transition of young workers, especially workers with low skills, or called blue-collar workers. The transition could be a change from blue-collar young workers to those Not in Education, Employment, or Training (NEET). This study aims to examine the determinants of the transition of blue-collar young workers who become Unemployed NEET or Inactive NEET during the pandemic. In this study, data from the National Labor Force Survey (SAKERNAS) with individual panel observations, observed in two survey periods, namely August 2019 and August 2020, were analyzed using multinomial logistic regression. Demographic factors, human capital, and the risk status of COVID-19 in the area where young workers live are important issues in the transition of blue-collar young workers to NEET. Optimizing gender-based employment policies, implementing policies that suit the needs of young workers in rural or urban areas, as well as intensifying the use of the internet for work that can increase worker resilience, are some of the solutions to prevent the NEET transition from blue-collar young workers during the pandemic. Keywords: Blue-Collar Worker, Multinomial logistic regression, NEET, Sakernas, Young worker
Determinants Of Women’s Employment Participation Who Have Toddler In East Java During The Covid-19 Pandemic Atma Sari; Devanto Shasta Pratomo; Nurul Badriyah
Journal of International Conference Proceedings Vol 5, No 4 (2022): FEBIC International Conference Proceeding
Publisher : AIBPM Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32535/jicp.v5i4.1908

Abstract

The current COVID-19 pandemic situation has had an unfavorable impact on Indonesia's employment issues, especially women's employment. Women's work participation is needed to help improve the family's economy during the pandemic. The presence of toddler the household will affect a woman's decision to enter the labor market, because women are faced with a choice between raising children or working. Using Susenas 2021 data, this study aims to exemine the determinants of women's work participation who have toddler in East Java during the Covid 19 pandemic. Based on the results of binary logistic regression, it is known that age, education, area of residence, internet use, household poverty status, husband's employment status in East Java have a significant effect on the participation of women who have toddler in East Java during the Covid 19 pandemic. While the number of members has no significant effect. From this research, it is necessary to implement policies that make it easier for women with toddlers to enter the labor market that favors mothers with working toddlers such as policies on working time, sick leave, maternity leave, and exclusive breastfeeding.
KEBIJAKAN UPAH MINIMUM UNTUK PEREKONOMIAN YANG BERKEADILAN: TINJAUAN UUD 1945 Devanto Shasta Pratomo; Putu Mahardika Adi Saputra
Journal of Indonesian Applied Economics Vol. 5 No. 2 (2011)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (956.32 KB) | DOI: 10.21776/ub.jiae.2011.005.02.8

Abstract

The aim of this research is to determine the progress of minimum wage policy inIndonesia, and their linkage to the 1945 Constitution article 27 act 2. The implemen-tation of minimum wage policy in accordance with that constitution, at least shouldbe a few things to do. This includes needs such as decent living as a component ofminimum wage determination. Furthermore, it needs to fill the necessity of transpar-ent effort and intense socialization of benefit provision in the minimum wage. Inaddition it must be clear about the protected status of workers in minimum wagepolicy. The last is the enforcement and strict penalties for companies that do not applythe appropriate minimum wage policy.Keywords: 1945 Constitution article 27 act 2, Minimum Wage Policy, Enfrocement,
RELASI KONSTITUSI DENGAN USAHA TANI IKAN, SAYUR, TELUR ORGANIK DAN NON-ORGANIK GUNA MENDUKUNG EKONOMI MASYARAKAT DAN WILAYAH ( STUDI KASUS DI KECAMATAN BANTUR KABUPATEN MALANG ) Sri Muljaningsih; Ghozali Maski; Devanto Shasta Pratomo
Journal of Indonesian Applied Economics Vol. 5 No. 1 (2011)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (895.046 KB) | DOI: 10.21776/ub.JIAE.005.01.8

Abstract

Agribusiness is still the pillar for farmers’ economy in Indonesia who, mostly, workfor agricultural sector. This also applies in regional economy in which agriculturalsector is the primary sector that becomes the basis for economy and gives sufficientcontribution  to  the  regional economic development. However,  the  condition of  thefarmers’  economy  has  so  far  shown  no  significant  development. The Constitution(UUD 1945) regulates national economy that embraces any fields, including the sus-tainable and environment-oriented agriculture, aiming at society’s prosperity in botheconomy and health. The research shows that there is no difference on benefit betweenorganic and non-organic agribusiness on fish, vegetable, eggs. Thus agribusiness isbetter developed  conforming  to  the Constitution  that  signals  environment-orientedagriculture.Keywords: agribusiness, constitution, economic basis, environment-oriented.
PERMINTAAN PARIWISATA INDONESIA: STUDI KASUS WISATAWAN MALAYSIA Devanto Shasta Pratomo
Journal of Indonesian Applied Economics Vol. 3 No. 2 (2009)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (208.083 KB) | DOI: 10.21776/ub.JIAE.003.02.8

Abstract

This research attempts to study the effect of income per capita in Malaysia (GDP),relative  prices  (CPI)  and Visit  Indonesia Year  1991  to  Indonesia  tourism demandamong Malaysian visitors. Malaysian visitors’ arrivals  to  Indonesia are used as aproxy of  Indonesia  tourism demand among Malaysian visitors.  In other words, anincrease in the Malaysian visitor arrivals to Indonesia indicates an increase in thetourism demand among Malaysian visitors, vice versa. The data used in  this studyare quarterly secondary data for the period 1989.1-1997.4 consisting of total Malay-sian visitor arrival to  Indonesia, income per capita in Malaysia, and ratio of con-sumer price  index of Indonesia  to consumer price  index of Malaysia. The analysismethod applied in this study is regression using Error Correction Model (ECM). Theresults show that income per capita of Malaysia is elastic and positively affects Ma-laysian visitor arrivals  to  Indonesia. On the other hand, relative prices negativelyaffect Malaysian visitor arrivals to Indonesia, while Visit Indonesia Year 1991 posi-tively affects Malaysian visitor arrivals to Indonesia.Keywords: tourism, GDP, CPI, and ECM
Pengaruh Modal Manusia terhadap Transisi Tenaga Kerja Formal Menjadi Informal pada Masa Pandemi Covid-19 Tasmilah, Tasmilah; Pratomo, Devanto Shasta; Syafitri, Wildan
Jurnal Ekonomi dan Pembangunan Indonesia Vol. 23, No. 1
Publisher : UI Scholars Hub

Show Abstract | Download Original | Original Source | Check in Google Scholar

Abstract

This study aims to examine the effect of human capital on the transition of formal to informal labor during the Covid-19 pandemic. Human Capital in this study includes education, training, experience, skills, and the use of digital technology and the internet. Using Sakernas data in August 2019 and 2020, logistic regression was conducted to estimate the effect of human capital on the formal labor transition. Based on analysis, human capital has a significant effect on the transition of formal labor during the pandemic. Education, training, and use of digital technology and the internet will prevent the transition of formal to informal labor. Meanwhile, experience and training have a positive effect on the transition of formal to informal labor.
Co-Authors Abas, Imelda Hermilinda Abdus Salam Abidin, Mufti Kandaga Agus Suman Al Ayyubi, Muhammad Salahudin Ali Attibrizi AMINULLAH, BRILLIAN AKBAR Amran Rasli, Amran Ananda, Muhammad Rizqie Angga Erlando Arisetyawan, Kukuh Aryntika Cahyantini Asawidya, Putri Ayu Asmi, Rasylia Minatasya Asrofi, Dien Amalina Nur Atma Sari Atsiil Dyarry Ayu Putri Attibrizi, Ali Aulia, Tri Setya Cahyantini, Aryntika Christiayu Natalia Chusnul Faizah Clarissa Sekar Anindya Danny Nur Febrianica Desyandri Desyandri Eka Intan Kumala Putri Erdinia Puspita Widyastuti Erlyn Yuniashri Faishol Amir Farah Wulandari Pangestuty Ferry Prasetyia Firnanda Novita Rahmawati FX Gugus Febri Putranto Ghozali Maski Hanantajaya, Adhe Repsi Jomaki, Tiara Rachellya Chrisanta Karuniasari, Rima Jayanti Khusnul Ashar Khusnul Ashar Khusnul Ashar Krisantana, Wayan Jonatan Satwika Kyohei Yamada M Pudjihardjo M. Pudjihardjo M. Umar Burhan M. Umar Burhan Made Ika Prastyadewi Mahalli, Fina Nidaul Moh. Khusaini Mufti Kandaga Abidin Muhammad Dzaky Rafliansyah Muhammad Salahudin Al Ayyubi Muid, Abdullah Musdar Muhammd Nur Asrofi, Dien Amalina Nurul Badriyah Putranto, FX Gugus Febri Putri Ayu Asawidya Putu Mahardika Adi Saputra Qorida Rosyita Rahman Radewa Rizki Mirma Wijaya Regina Mayo Rio Dhuwi Saputra Ruslan, Widya Devina Amelia Putri Salahudin Al Ayyubi, Muhammad Salsabilla, Adinda Thalia Sasi Kirana Zahrani Saputri Setyanti, Acellina Muara Silvi Asna Prestianawati Siti Zilfiyah Sri Muljaningsih Susilo Susilo Syamsul Arifin Tasmilah, Tasmilah Utami, Regina Pramesti Wicesa, Nayaka Artha Wildan Syafitri Wisdawan, Kukuh Tri Yulia Maris Herdianti, Yulia Maris