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Female Labour Force Participation in Indonesia: Why Has It Stalled

Author

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  • Lisa Cameron

    (Melbourne Institute: Applied Economic & Social Research, The University of Melbourne)

  • Diana Contreras Suárez

    (Melbourne Institute: Applied Economic & Social Research, The University of Melbourne)

Abstract

This paper examines the drivers of female labour force participation in Indonesia and disentangles the factors that have contributed to it remaining largely unchanged for two decades at around 51%. Data from the National Socioeconomic Survey (Susenas) and the Village Potential Statistics (Podes) over the period 1996 to 2013 are used to implement a cohort analysis which separates out life-cycle effects from changes over time in women’s labour market participation. We find that the raw labour market participation figures which show little change over time mask changes that offset one another in the current population. There is evidence of social norms changing to support women’s participation but this is offset by the effect of the changing industrial structure. Projections show that with the current policy settings Indonesia is unlikely to reach its G20 target of decreasing the gender gap in participation by 25% between 2014 and 2025.

Suggested Citation

  • Lisa Cameron & Diana Contreras Suárez, 2018. "Female Labour Force Participation in Indonesia: Why Has It Stalled," Melbourne Institute Working Paper Series wp2018n11, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    • Handle: RePEc:iae:iaewps:wp2018n11
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    File URL: https://melbourneinstitute.unimelb.edu.au/__data/assets/pdf_file/0005/2938388/wp2018n11.pdf
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    Cited by:

    1. Hal Hill, 2020. "Indonesian Living Standards over 50 Years: A Multidimensional Analysis," Asian Economic Journal, East Asian Economic Association, vol. 34(3), pages 249-274, September.
    2. Fitri Hariana Oktaviani & Bernard McKenna & Terrance Fitzsimmons, 2021. "Trapped within ideological wars: Femininities in a Muslim society and the contest of women as leaders," Gender, Work and Organization, Wiley Blackwell, vol. 28(3), pages 1152-1176, May.
    3. Kusumawardhani, Niken & Pramana, Rezanti & Saputri, Nurmala Selly & Suryadarma, Daniel, 2023. "Heterogeneous impact of internet availability on female labor market outcomes in an emerging economy: Evidence from Indonesia," World Development, Elsevier, vol. 164(C).
    4. Nkoumou Ngoa, Gaston Brice & Song, Jacques Simon, 2021. "Female participation in African labor markets: The role of information and communication technologies," Telecommunications Policy, Elsevier, vol. 45(9).
    5. Lisa Cameron & Diana Contreras Suarez & Yi-Ping Tseng, 2023. "Women’s transitions in the labour market as a result of childbearing: the challenges of formal sector employment in Indonesia," Melbourne Institute Working Paper Series wp2023n06, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.

    More about this item

    Keywords

    Female labour force participation; labour markets; gender; Indonesia; cohort analysis;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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