Title: TRANSITION OF FORMAL AND INFORMAL LABOR IN INDONESIA
Author: NENY ADITINA,
Universitas Airlangga
Item Type : Thesis (Thesis)
Abstract
Informal labor is synonymous with low-productivity jobs, using simple technology and skills, and lacking social security. Nationally, more than 50 percent of the workforce is dominated by those working as informal workers. This study aims to analyze the social, demographic, and employment factors that influence individuals in making the transition between formal and informal labor. The method used is multinomial logistic regression with data sourced from the February 2017-2018 National Labor Force Survey (Sakernas) Panel. The focus of the analysis is working individuals who are divided into four categories: continuing to work as informal workers, transitioning from informal to formal labor, transitioning from formal to informal labor, and remaining as formal workers. Individuals who are young, male, unmarried, living in urban areas, and have a university education are more likely to transition to the formal workforce. Similarly, those who previously worked in the manufacturing sector, have work experience, and have attended certified training are also more likely to transition to the formal workforce. These findings provide suggestions for improving the quality of human capital because aspects of education, experience and training that shape competency will influence individual involvement as a formal workforce.
Keywords: transition, formal-informal worker, multinomial logistic regression, Sakernas