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The Labor Shifting in Indonesian Labor Market

Author

Listed:
  • Meily Ika Permata

    (Bank Indonesia)

  • Yanfitri

    (Bank Indonesia)

  • Andry Prasmuko

    (Bank Indonesia)

Abstract

This paper analyzes the labor shifting phenomenon in Indonesian labor market. Labor shifting phenomenon in developing countries, including Indonesia, is considered to be the reason of stable movement from the supply perspective. By using Sakernas data year 1998-2008, this paper analyzes the labor shifting phenomenon, both the direction of labor movement and the characteristics of the shifting labor. The main conclusions obtained in this research are, first, there is no structural break in Indonesian labor market. Second, although most of labors tend to remain in the same sector or intra-sector, the analysis shows there is tendency for the labor to move from non formal sectors especially to Agricultural and Trade sectors. Third, the model estimation result with a series of controlled category shows the biggest three probability of not shifting and remaining in the same sectors are in Electricity sector (70,15%), Financial sector (55,8%) and Mining sector (53,13%). On the other side, the biggest labor mobility opportunity to conduct shifting is on Industry sector (80.14%), Construction sector (64.3%), and Transportation sector (62.4%).

Suggested Citation

  • Meily Ika Permata & Yanfitri & Andry Prasmuko, 2010. "The Labor Shifting in Indonesian Labor Market," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 12(3), pages 1-38, January.
    • Handle: RePEc:idn:journl:v:12:y:2010:i:3:p:1-38
    DOI: https://doi.org/10.21098/bemp.v12i3.373
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    More about this item

    Keywords

    Demand for Labor; Job Mobility; Labor shifting; Unemployment;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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