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Labour market dimensions of poverty in Indonesia

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  • Armida Alisjahbana
  • Chris Manning

Abstract

This paper focuses on labour market issues relevant to poverty alleviation. Patterns of participation, unemployment and employment are examined among the poor compared with the non-poor in general, among urban and rural households, and among various socio-demographic groups. Using data from the 2002 National Socio-Economic Survey, the paper finds that low participation in the workforce and high unemployment, while important, are less closely related to poverty status than expected, especially among spouses of household heads. However, sector of employment and underemployment are closely associated with poverty, especially for those in informal jobs in urban areas; in rural areas, the poor are heavily concentrated in agriculture. Among the poor, young people and females are more likely to be underemployed and to work in agriculture than prime-age workers. The data suggest that labour market policies that tend to protect those in formal sector employment are unlikely to reduce poverty much, if at all.

Suggested Citation

  • Armida Alisjahbana & Chris Manning, 2006. "Labour market dimensions of poverty in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 42(2), pages 235-261.
    • Handle: RePEc:taf:bindes:v:42:y:2006:i:2:p:235-261
    DOI: 10.1080/00074910600873674
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    References listed on IDEAS

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    8. Bird, Kelly & Manning, Chris, 2008. "Minimum Wages and Poverty in a Developing Country: Simulations from Indonesia's Household Survey," World Development, Elsevier, vol. 36(5), pages 916-933, May.
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    Cited by:

    1. Le Thanh Tung & Le Kien Cuong, 2020. "Impact of Tourism on Poverty Reduction - Evidence from an Emerging Tourism Market," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 16(3), pages 45-55.
    2. Asep Suryahadi & Sudarno Sumarto & Gracia Hadiwidjaja, "undated". "Pertumbuhan Ekonomi dan Penanggulangan Kemiskinan di Indonesia sebelum dan setelah Krisis Keuangan Asia," Working Papers 3443, Publications Department.
    3. Asep Suryahadi & Gracia Hadiwidjaja & Sudarno Sumarto, 2012. "Economic growth and poverty reduction in Indonesia before and after the asian financial crisis," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 48(2), pages 209-227, August.
    4. Moeis, Faizal Rahmanto & Dartanto, Teguh & Moeis, Jossy Prananta & Ikhsan, Mohamad, 2020. "A longitudinal study of agriculture households in Indonesia: The effect of land and labor mobility on welfare and poverty dynamics," World Development Perspectives, Elsevier, vol. 20(C).

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