Jurnal Ekonomi dan Studi Pembangunan (JESP)
Vol 16, No 2 (2024)

What Drives Blue-Collar Workers Transition in The Labor Market Dynamics? Lesson Learned from Indonesia

Christiayu Natalia (Department of Economics, Brawijaya University)
Devanto Shasta Pratomo (Department of Economics, Brawijaya University)
Wildan Syafitri (Department of Economics, Brawijaya University)



Article Info

Publish Date
24 Dec 2024

Abstract

The recovery from the global pandemic, as well as improvements in automation technologies, have presented substantial challenges for blue-collar workers who specialized in manual work. Labor transition is considered a strategy to adapt and strengthen their resilience. This study utilizes Indonesian National Labor Force Survey / SAKERNAS data from August 2023 to examine the key factors influencing blue-collar worker transitions in Indonesia, including three primary outcomes: (1) remaining unemployed and inactive, (2) transitioning back to the blue-collar worker, and (3) transitioning to the white-collar worker. The study employs multilevel multinomial logistic regression to examine the influence of individual characteristics (e.g., gender, marital status, age, education, migration, training, employment card possession, and area of residence) and regional characteristics (e.g., internet penetration, minimum wage levels, and municipal economic growth) on labor transitions. Results reveal that both individual and regional characteristics significantly impact these transitions. To address these challenges, enhancing human capital through targeted technical training is essential to improve the resilience and adaptability of blue-collar workers in Indonesia's dynamic labor market. This research emphasizes the importance of policy in equipping the blue-collar worker to navigate the evolving demands of the labor market.

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Journal Info

Abbrev

JESP

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Ekonomi dan Studi Pembangunan focuses on scientific papers related to development economics include critical analysis of economic development issues, local economic development, community economic development, economic growth, international trade and finance, fiscal and monetary policy, ...