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Do migrants get stuck in the informal sector? Findings from a household survey in four Indonesian cities

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  • Chris Manning
  • Devanto S. Pratomo

Abstract

This article compares labour-market outcomes for individuals in migrant and non-migrant households in Indonesia. It introduces two new work-status groups -- small-business operators and formal-casual or contract employees -- in an effort to transcend the usual formal--informal distinction. We find that long-term migrants (LTMs) tend to gravitate to the small-business sector and to jobs with regular wages, whereas recent and very recent migrants are more likely to work in the informal sector. Our findings on the labour-market outcomes of successive generations of migrants are less conclusive. While a larger proportion of LTM children than that of their parents work in the formal sector, the children of migrant heads of households are less likely than those of non-migrants to find formal-sector jobs. We also find that distortionary labour-market regulations appear to diminish the overall benefits of migration.

Suggested Citation

  • Chris Manning & Devanto S. Pratomo, 2013. "Do migrants get stuck in the informal sector? Findings from a household survey in four Indonesian cities," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 49(2), pages 167-192, August.
    • Handle: RePEc:taf:bindes:v:49:y:2013:i:2:p:167-192
    DOI: 10.1080/00074918.2013.772940
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    References listed on IDEAS

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    1. Manning,Chris, 1998. "Indonesian Labour in Transition," Cambridge Books, Cambridge University Press, number 9780521594127, November.
    2. World Bank, 2009. "Geography in Motion: World Development Report 2009 (excerpt)," Transnational Corporations Review, Ottawa United Learning Academy, vol. 1(3), pages 40-46, September.
    3. Michael Clemens, 2010. "A Labor Mobility Agenda for Development," Working Papers 201, Center for Global Development.
    4. World Bank, 2010. "Indonesia Jobs Report," World Bank Publications - Reports 27901, The World Bank Group.
    5. Xin Meng & Chris Manning & Li Shi & Tadjuddin Nur Effendi (ed.), 2010. "The Great Migration," Books, Edward Elgar Publishing, number 13619, June.
    6. Budy Resosudarmo & Daniel Suryadarma, 2011. "The Effect of Childhood Migration on Human Capital Accumulation: Evidence from Rural-Urban Migrants in Indonesia," Departmental Working Papers 2011-02, The Australian National University, Arndt-Corden Department of Economics.
    7. Lall, Somik V. & Selod, Harris & Shalizi, Zmarak, 2006. "Rural-urban migration in developing countries : a survey of theoretical predictions and empirical findings," Policy Research Working Paper Series 3915, The World Bank.
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    Cited by:

    1. Arief Anshory Yusuf & Andy Sumner & Irlan Adiyatma Rum, 2014. "Twenty Years of Expenditure Inequality in Indonesia, 1993-2013," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 50(2), pages 243-254, August.
    2. Meilinda Trisilia & Susilo & Devanto Shasta Pratomo & M. Pudjihardjo, 2024. "Characteristics of Migrant Workers and Economic Growth: An Interregional Migration in Indonesia," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 98-111.

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