Title : FORMAL AND INFORMAL LABOR TRANSITION IN INDONESIA
Author : NENY ADITINA
Universitas Airlangga
Item Type : Thesis (Thesis)
Abstract
Informal labor is synonymous with work that has low productivity, uses simple technology and skills and does not have social security. On a national scale, more than 50 percent of the workforce is dominated by those who work as informal workers. This research aims to analyze social, demographic and employment factors that influence individuals in making formal/informal workforce transitions. The method used is multinomial logistic regression with data sourced from the National Labor Force Survey (Sakernas) Panel February 2017-2018. The focus of the analysis is working individuals who are divided into four categories: continuing to work as informal workers, making the transition from informal to formal workers, making the transition from formal to informal workers, and continuing to work as formal workers. Someone who is young, male, unmarried, lives in an urban area and has a university education has a higher tendency to transition into the formal workforce. Likewise, for those who previously worked in the manufacturing sector, have work experience and have attended certified training, their tendency to transition into formal labor will also be higher. These findings provide suggestions for improving the quality of human capital because aspects of education, experience and training that form competencies will influence individual involvement as formal workers.
Keywords: transition, formal-informal worker, multinomial logistic regression, Sakernas
