Jurnal Ekonomi, Bisnis & Entrepreneurship (e-Journal)
Vol. 20 No. 1 (2026): Jurnal Ekonomi, Bisnis & Entrepreneurship (e-Journal)

Mapping Informality: A Spatial Error Model of Socio-Economic Influences on Informal Employment in Indonesia

Nafidza Shadrina Diva Aulia (Faculty of Economics and Business Universitas Brawijaya)
Cahyaning Adi Mukti (Faculty of Economics and Business Universitas Brawijaya)
Yulianita Putri Pangaribuan (Faculty of Economics and Business Universitas Brawijaya)
Khusnul Ashar (Faculty of Economics and Business Universitas Brawijaya)
Axellina Muara Setyanti (Faculty of Economics and Business Universitas Brawijaya)



Article Info

Publish Date
22 May 2026

Abstract

The informal employment sector remains a dominant part of the labor market in Indonesia, which is influenced by various socioeconomic factors. This study aims to analyze the spatial influence of poverty, education level, and internet access on the distribution of informal employments in 34 provinces in Indonesia using the Spatial Error Model (SEM). The results show significant spatial autocorrelation, especially for poverty and informal workers, which confirms the existence of inter-regional spillover effects. The SEM estimation shows that poverty has a positive and significant effect on the level of informal employment, while higher education levels and internet access significantly reduce the level of informal employment. These findings emphasize the importance of spatially-aware policy interventions in addressing the issue of informal employments. Strengthening education, digital infrastructure, and targeted poverty alleviation programs are important strategies.

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Journal Info

Abbrev

jebe

Publisher

Subject

Description

The focus areas of the journal include, but are not limited to: Economic theories and models: The journal welcomes articles that explore and analyze economic theories, models, and frameworks to understand the behavior of markets, industries, and economies. Management practices and strategies: ...