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Informal Employment in Indonesia

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Author Info

  • Cuevas, Sining

    (Asian Development Bank)

  • Mina, Christian

    (Asian Development Bank)

  • Barcenas, Marissa

    (Asian Development Bank)

  • Rosario, Aleli

    (Asian Development Bank)

Abstract

The paper attempted to use the February 2007 round of Indonesia’s National Labor Force Survey (Sakernas) for a comparative analysis of wages and benefits of formal and informal workers. While Sakernas was not designed for this purpose, the study explored questions in the existing survey that can be used to distinguish formal and informal workers. Because of data limitation, workers were classified as employed informally or “mixed”—a category composed of workers who cannot be identified, with precision, to be engaged in either formal or informal employment. Given this constraint, informal employment was estimated at the minimum to be at 29.1% of total employment in Indonesia. Informal employment is also highly concentrated in rural areas and is prevalent in agriculture and construction sectors. More women are likely to be informally employed than men, and women generally receive lower pay and are mostly unpaid family workers. To the extent possible the study was able to examine informal employment in Indonesia and to identify the gaps in the Sakernas questionnaire that can be addressed in future rounds of the survey for a successful comparative analysis between formal and informal workers.

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File URL: http://www.adb.org/Documents/Working-Papers/2009/Economics-WP156.pdf
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Bibliographic Info

Paper provided by Asian Development Bank in its series ADB Economics Working Paper Series with number 156.

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Length: 45 pages
Date of creation: Apr 2009
Date of revision:
Handle: RePEc:ris:adbewp:0156

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Related research

Keywords: Indonesia; informal employment; informal sector; gender analysis; wage differentials;

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Cited by:
  1. Mina, Christian D., 2013. "Employment of Persons with Disabilities (PWDs) in the Philippines: The Case of Metro Manila and Rosario, Batangas," Discussion Papers DP 2013-13, Philippine Institute for Development Studies.
  2. Tabuga, Aubrey D. & Mina, Christian D. & Reyes, Celia M. & Asis, Ronina D. & Datu, Maria Blesila G., 2011. "Persons with Disability (PWDs) in Rural Philippines: Results from the 2010 Field Survey in Rosario, Batangas," Discussion Papers DP 2011-06, Philippine Institute for Development Studies.

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