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Progress and stagnation in the livelihood of informal workers in an emerging economy: Long-term evidence from Indonesia

Author

Listed:
  • Mayang Rizky
  • Daniel Suryadarma
  • Asep Suryahadi

Abstract

We use long-spanning individual longitudinal data to examine the long-term labour market outcomes of low-tier informal workers. We investigate their characteristics, calculate the extent of switching, and identify the characteristics of those who have switched. Finally, we estimate the earnings premium of switching. We find that individuals are negatively selected into low-tier informal work. Almost half of individuals who started out as a low-tier informal worker remained as low-tier informal workers through the next 8-19 years. The other half switched on average three times.

Suggested Citation

  • Mayang Rizky & Daniel Suryadarma & Asep Suryahadi, 2020. "Progress and stagnation in the livelihood of informal workers in an emerging economy: Long-term evidence from Indonesia," WIDER Working Paper Series wp-2020-143, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2020-143
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    Keywords

    Earnings; Indonesia; Informal sector; Long-run effects;
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