TY - UNPB
T1 - Poverty and the Labour Market in Indonesia
T2 - Employment Trends across the Wealth Distribution
AU - Priebe, Jan
AU - Howell, Fiona
AU - Sari, Virgi
PY - 2015/3/1
Y1 - 2015/3/1
N2 - ‘Poverty and the Labour Market in Indonesia: Employment Trends across the Wealth Distribution’, is among Indonesia’s first papers on the relationship between poverty and the labour market. It provides a detailed analysis of employment indicators (labour force participation rates, hours worked, and type and sector of employment) for the period 2000-2012 across the entire wealth distribution, by location,gender and various socio demographic characteristics.Despite high economic growth rates, the creation of millions of new jobs, and a strong decrease in poverty rates in recent years, many Indonesians continue to live in poverty even when employed. This paper finds that the poor are as likely as the non poor to work, both at the extensive (labour force participation) and at the intensive (number of days and number of hours) margins. The reason for being poor despite being employed is therefore largely driven by other factors.In terms of household structure, clear evidence exists that the working poor need to share their income with a larger household, including economically nonactive members such as young children and the elderly. The higher dependency ratio contributes to their being/becoming working poor.Significant gender differences exist in the Indonesian labour market. Men show higher labour force participation rates and are more likely to work more hours compared with women. However, no strong gender differences were observed when comparing the working poor with the non poor.The authors observed that the relative share of the rural working poor as a portion of all working poor has increased over time and that the majority of the working poor are employed in the agricultural sector.Furthermore, the working poor are predominantly and increasingly (in relative terms) concentrated in the informal sector of the economy.An important finding concerns the role of education in the likelihood of being poor or non poor. Results also suggest that only the attainment of higher secondary and tertiary education seems to increase the likelihood of being meaningfully protected against poverty.
AB - ‘Poverty and the Labour Market in Indonesia: Employment Trends across the Wealth Distribution’, is among Indonesia’s first papers on the relationship between poverty and the labour market. It provides a detailed analysis of employment indicators (labour force participation rates, hours worked, and type and sector of employment) for the period 2000-2012 across the entire wealth distribution, by location,gender and various socio demographic characteristics.Despite high economic growth rates, the creation of millions of new jobs, and a strong decrease in poverty rates in recent years, many Indonesians continue to live in poverty even when employed. This paper finds that the poor are as likely as the non poor to work, both at the extensive (labour force participation) and at the intensive (number of days and number of hours) margins. The reason for being poor despite being employed is therefore largely driven by other factors.In terms of household structure, clear evidence exists that the working poor need to share their income with a larger household, including economically nonactive members such as young children and the elderly. The higher dependency ratio contributes to their being/becoming working poor.Significant gender differences exist in the Indonesian labour market. Men show higher labour force participation rates and are more likely to work more hours compared with women. However, no strong gender differences were observed when comparing the working poor with the non poor.The authors observed that the relative share of the rural working poor as a portion of all working poor has increased over time and that the majority of the working poor are employed in the agricultural sector.Furthermore, the working poor are predominantly and increasingly (in relative terms) concentrated in the informal sector of the economy.An important finding concerns the role of education in the likelihood of being poor or non poor. Results also suggest that only the attainment of higher secondary and tertiary education seems to increase the likelihood of being meaningfully protected against poverty.
U2 - 10.2139/ssrn.2571538
DO - 10.2139/ssrn.2571538
M3 - Working paper
BT - Poverty and the Labour Market in Indonesia
PB - SSRN
ER -