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Do migrants get stuck in the informal sector? Findings from a household survey in four Indonesian cities

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  • Chris Manning
  • Devanto S. Pratomo

Abstract

This article compares labour-market outcomes for individuals in migrant and non-migrant households in Indonesia. It introduces two new work-status groups -- small-business operators and formal-casual or contract employees -- in an effort to transcend the usual formal--informal distinction. We find that long-term migrants (LTMs) tend to gravitate to the small-business sector and to jobs with regular wages, whereas recent and very recent migrants are more likely to work in the informal sector. Our findings on the labour-market outcomes of successive generations of migrants are less conclusive. While a larger proportion of LTM children than that of their parents work in the formal sector, the children of migrant heads of households are less likely than those of non-migrants to find formal-sector jobs. We also find that distortionary labour-market regulations appear to diminish the overall benefits of migration.

Suggested Citation

  • Chris Manning & Devanto S. Pratomo, 2013. "Do migrants get stuck in the informal sector? Findings from a household survey in four Indonesian cities," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 49(2), pages 167-192, August.
    • Handle: RePEc:taf:bindes:v:49:y:2013:i:2:p:167-192
    DOI: 10.1080/00074918.2013.772940
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    References listed on IDEAS

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    1. Manning,Chris, 1998. "Indonesian Labour in Transition," Cambridge Books, Cambridge University Press, number 9780521594127, September.
    2. World Bank, 2009. "Geography in Motion: World Development Report 2009 (excerpt)," Transnational Corporations Review, Ottawa United Learning Academy, vol. 1(3), pages 40-46, September.
    3. Budy Resosudarmo & Daniel Suryadarma, 2011. "The Effect of Childhood Migration on Human Capital Accumulation: Evidence from Rural-Urban Migrants in Indonesia," Departmental Working Papers 2011-02, The Australian National University, Arndt-Corden Department of Economics.
    4. Michael Clemens, 2010. "A Labor Mobility Agenda for Development," Working Papers 201, Center for Global Development.
    5. World Bank, 2010. "Indonesia Jobs Report," World Bank Publications - Reports 27901, The World Bank Group.
    6. Xin Meng & Chris Manning & Li Shi & Tadjuddin Nur Effendi (ed.), 2010. "The Great Migration," Books, Edward Elgar Publishing, number 13619.
    7. Lall, Somik V. & Selod, Harris & Shalizi, Zmarak, 2006. "Rural-urban migration in developing countries : a survey of theoretical predictions and empirical findings," Policy Research Working Paper Series 3915, The World Bank.
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    Cited by:

    1. Arief Anshory Yusuf & Andy Sumner & Irlan Adiyatma Rum, 2014. "Twenty Years of Expenditure Inequality in Indonesia, 1993-2013," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 50(2), pages 243-254, August.
    2. Meilinda Trisilia & Susilo & Devanto Shasta Pratomo & M. Pudjihardjo, 2024. "Characteristics of Migrant Workers and Economic Growth: An Interregional Migration in Indonesia," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 98-111.

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