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The Placement Model for Indonesian Migrant Workers to Improve their Economic Welfare

Author

Listed:
  • Izza Mafruhah

    () (Faculty of Economic and Business, Sebelas Maret University, Indonesia Author-2-Name: Nurul Istiqomah Author-2-Workplace-Name: Faculty of Economic and Business, Sebelas Maret University, Indonesia Author-3-Name: Nunung Sri Mulyani Author-3-Workplace-Name: Institute for Research and Community Service, Sebelas Maret University, Indonesia, Author-4-Name: Mugi Rahardjo Author-4-Workplace-Name: Faculty of Economic and Business, Sebelas Maret University, Indonesia)

Abstract

"Objective – Indonesian Migrant Workers (TKI) have an important role in employment. In 2015, the number of migrants who worked abroad reached more than seven million people. Despite the huge number, Indonesian Migrant workers are prone to problems encompassing: pre-placement, placement, and post-placement phases. This study aims to analyze the priority factors affecting migrant workers at the three phases as a means to determine their work success. This study also aims to develop a placement model for Indonesian migrant workers especially in the formal sector so as to better improve their welfare. Methodology/Technique – To build a model of migrant workers for the formal sector, this study uses two approaches: 1) Analytical Hierarchy Process (AHP) and 2) Qualitative Analysis which is based on in-depth interviews and focused group discussions. Findings – The results showed that the priority factors that determine migrant workers’ success include the three phases: the placement phase with a value of 0.523198; the pre-placement phase with a value of 0.289185; and the post-placement phase with a value of 0.187617. In addition, it is found that the formal sector placement policy should be conducted in collaboration with the countries of destination, especially in the recruitment patterns, the substance of contract, and legal protection. It is suggested that countries that have cooperated in the placement of migrant workers with the G-to-G (Government to Government) model is Japan and South Korea while the placement to other countries of destination is done with the B-to-B (Business to Business) model. Novelty – The main model recommended in this study is the G to G model which should be implemented in order to safeguard migrant workers as well as to ensure that this model is formulated in policies and government regulations."

Suggested Citation

  • Izza Mafruhah, 2016. "The Placement Model for Indonesian Migrant Workers to Improve their Economic Welfare," GATR Journals jber116, Global Academy of Training and Research (GATR) Enterprise.
  • Handle: RePEc:gtr:gatrjs:jber116
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    References listed on IDEAS

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    1. Dequiedt, Vianney & Zenou, Yves, 2013. "International migration, imperfect information, and brain drain," Journal of Development Economics, Elsevier, vol. 101(C), pages 117-132.
    2. Dustmann, Christian & Kirchkamp, Oliver, 2002. "The optimal migration duration and activity choice after re-migration," Journal of Development Economics, Elsevier, vol. 67(2), pages 351-372, April.
    3. Giulia Bettin & Andrea F. Presbitero & Nikola L. Spatafora, 2017. "Remittances and Vulnerability in Developing Countries," World Bank Economic Review, World Bank Group, vol. 31(1), pages 1-23.
    4. Bouguen, Adrien & Filmer, Deon & Macours, Karen & Naudeau, Sophie, 2014. "Preschools and early childhood development in a second best world: Evidence from a scaled-up experiment in Cambodia," CEPR Discussion Papers 10170, C.E.P.R. Discussion Papers.
    5. Dustmann, Christian & Fadlon, Itzhak & Weiss, Yoram, 2011. "Return migration, human capital accumulation and the brain drain," Journal of Development Economics, Elsevier, vol. 95(1), pages 58-67, May.
    6. Douglas S. Massey, 1999. "International Migration at the Dawn of the Twenty‐First Century: The Role of the State," Population and Development Review, The Population Council, Inc., vol. 25(2), pages 303-322, June.
    7. A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
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    Cited by:

    1. Izza Mafruhah, 2017. "The Analysis of Community Empowerment Process through Poor Community Group (The Comparative Study of Pilot and Replication Areas)," GATR Journals jmmr165, Global Academy of Training and Research (GATR) Enterprise.

    More about this item

    Keywords

    Indonesian Migrant Workers; AHP; G-to-G; B to B; PPTKIS.;

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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