International Journal of Social Science and Business
Vol. 8 No. 3 (2024): August

Who Intends to Enter the Formal Sector the Most? Individual-Level Determinants of Formal Job Selection in Indonesia

Susilo, Susilo (Unknown)
Pratomo, Devanto Shasta (Unknown)
Setyanti, Acellina Muara (Unknown)
Wicesa, Nayaka Artha (Unknown)
Prestianawati, Silvi Asna (Unknown)
Rasli, Amran (Unknown)
Abas, Imelda Hermilinda (Unknown)



Article Info

Publish Date
25 Aug 2024

Abstract

The informal sector in the labor market is often regarded as filled with low-quality, low-productivity, low-wage jobs. However, in Indonesia, the informal sector is important in absorbing more than half of the total workforce and providing subsistence wages for those not absorbed in the formal labor market. This study used SUSENAS microdata to determine the workforce determinants in working in the formal and informal sectors. The study results show that higher education, male gender, and living in an urban area increased one's chances of working in the formal sector. This study also found an inverted u-shaped curve on age, where a person's tendency to work in the formal sector would increase at the beginning of their productive age and decrease after entering the age of 27. Marital status in this study increased opportunities to work in the informal sector. This research may use to improve the labor policy and improve the job opportunity in both formal and informal sector.

Copyrights © 2024






Journal Info

Abbrev

IJSSB

Publisher

Subject

Social Sciences

Description

International Journal of Social Science and Business (IJSSB) is an open access, peer-reviewed and refereed journal published by Universitas Pendidikan Ganesha (Undiksha), Indonesia. The main objective of IJSSB is to provide an intellectual platform for the international scholars. IJSSB aims to ...