Labor market dualism has caused a persistent wage gap between formal and informal workers in Indonesia. This study aimed to decompose the wage difference between formal and informal workers based on cohorts in Indonesia and further analyze the factors that influence this gap. This allowed us to identify the structure of the labor market and whether it tends to be segmented or competitive. By controlling the cohort, the estimation result was compatible with the human capital accumulation argument. The data sourced from the 2010 and 2019 National Labor Surveys comprised 581,312 and 503,313 workers, respectively. This study used the threefold Heckman selection-biased corrected Blinder–Oaxaca decomposition technique. The results showed that the wage gap between formal and informal workers is decreasing, especially among the younger cohort. Among this cohort, the labor market is still segmented, although the degree of segmentation is lower. In contrast, the older cohort labor market is more competitive but at a decreasing rate. A further decomposition showed that education has affected the wage gap between young and old cohorts. However, this effect is diminishing. In addition, differences in institutional labor market settings such as the wage system and occupational health and safety systems have increased the wage gap. The findings imply that equitable access to education for the younger cohort and the improvement of labor market institutions can reduce the gap between formal and informal wages.
12 February 2025 in Jurnal Kebijakan Ekonomi dan Keuangan
Purpose – This research has three objectives. First, it analyzes regional economic characteristics regarding economic growth and personal income inequality within a region. Second, it examines the pattern of regional income inequality in Indonesia. Third, it analyzes the correlation trend between regional economic growth and income inequality from 2012 to 2023.Methods – This research uses inequality Klassen Typology, Williamson Index, and Pearson correlation to examine economic growth and income inequality. The secondary data sources are Indonesia's Central Statistics Agency (BPS) for 2012-2023.Findings – Almost half of the provinces in Indonesia are classified as having lower economic growth and lower inequality, called inclusive economies. However, income inequality across provinces has steadily increased recently, especially from 2017 to 2023. The results also show a tendency for a negative correlation between economic growth and income inequality, even though this correlation is not statistically significant. Implication – The Indonesian government should improve the economy's productivity through investment, infrastructure and human capital development while maintaining the redistributive policy and social welfare programmes. Originality – This study comprehensively analyzes recent economic growth in Indonesia in correlation to personal and regional income inequality. AbstrakTujuan – Penelitian ini memiliki tiga tujuan. Pertama, menganalisis karakteristik ekonomi regional terkait pertumbuhan ekonomi dan ketimpangan pendapatan antar individu di suatu wilayah. Kedua, mengkaji pola ketimpangan pendapatan regional di Indonesia. Ketiga, menganalisis tren korelasi antara pertumbuhan ekonomi regional dan ketimpangan pendapatan dari tahun 2012 hingga 2023. Metode – Penelitian ini menggunakan Tipologi Klassen Ketimpangan, Indeks Williamson, dan korelasi Pearson untuk mengkaji pertumbuhan ekonomi dan ketimpangan pendapatan. Sumber data sekunder adalah Badan Pusat Statistik (BPS) Indonesia tahun 2012-2023.Temuan – Hampir setengah dari provinsi di Indonesia tergolong memiliki pertumbuhan ekonomi dan ketimpangan yang lebih rendah, yang disebut ekonomi inklusif. Akan tetapi, ketimpangan pendapatan antar provinsi terus meningkat dalam beberapa tahun terakhir, terutama dari tahun 2017 hingga 2023. Hasil penelitian juga menunjukkan kecenderungan korelasi negatif antara pertumbuhan ekonomi dan ketimpangan pendapatan, meskipun korelasi ini tidak signifikan secara statistik.Implikasi – Pemerintah Indonesia harus meningkatkan produktivitas ekonomi melalui investasi, infrastruktur, dan pengembangan sumber daya manusia dengan tetap mempertahankan kebijakan redistributif dan program kesejahteraan sosial.Orisinalitas – Studi ini menganalisis secara komprehensif pertumbuhan ekonomi terkini di Indonesia dalam kaitannya dengan ketimpangan pendapatan perorangan dan maupun antar provinsi
30 December 2022 in Jurnal Kebijakan Ekonomi dan Keuangan
Purpose – This paper aims to analyze the effect of electronic money payment instruments and macroeconomic variables - inflation, exchange rates, foreign direct investment, and the labor force - economic growth.Methods – This study uses the Vector Error Correction Model (VECM) method to determine the relationship amongst variables in the long and short run. The data is a quarterly time series for the period 2011:1-2020:4.Findings –The research finds that transactions using electronic money have a positive and significant impact in the long term. In addition, foreign direct investment has also a positive and significant impact in the long term. Inflation and the labor force have a negative effect on economic growth in the long run, while the exchange rate has a negative effect in the short term.Implication – This research recommends that electronic money can promote economic growth in Indonesia.Originality –This study contributes to empirical literatures on the relationship between electronic money and economic growth in Indonesia.AbstrakTujuan – Penelitian ini bertujuan untuk mengkaji pengaruh penggunaan alat pembayaran dengan uang elektronik serta variabel makroekonomi yaitu inflasi, kurs, foreign direct investment, dan angkatan kerja terhadap Produk Domestik Bruto (PDB) sebagai proksi dari pertumbuhan ekonomi. Metode –Penelitian ini menggunakan metode Vector Error Corection Model (VECM) untuk mengetahui hubungan antar variabel dalam jangka panjang maupun pendek dengan seri waktu kuartalan periode 2011:1-2020:4. Temuan – Hasil penelitian menunjukkan bahwa transaksi mengguakan uang elektronik dan foreign direct investment memiliki dampak positif dan signifikan dalam jangka panjang. Inflasi dan angkatan kerja berpengaruh negatif terhadap pertumbuhan ekonomi dalan jangka panjang, sedangkan kurs berpengaruh negatif dalam jangka pendek. Implikasi – Penelitian ini mendukung bahwa perkembangan teknologi, dalam penelitian ini yaitu uang elektronik dapat digunakan sebagai alat untuk meningkatkan pertumbuhan ekonomi. Orisinalitas – Kajian ini memberikan kontribusi literature mengenai hubungan uang elektronik dan pertumbuhan ekonomi di Indonesia.
1 October 2017 in Economic Journal of Emerging Markets
This study was to analyse the efficiency and effectiveness of provincial road infrastructure performance Yogyakarta Province. The indicators of the efficiency measurement are congestion level, road maintenance, rehabilitation and improvement and the cost. Using the data envelopment analysis method, there was an only one out of fourteen road segment that is fully efficient. On average the efficiency level was quite low that is 34.9 percent due to equally treated system by local government regardless its utilization level. Whereas the effectiveness of road performance is measured by the satisfaction level using indicator of value for time and money, comfort and convenience, safety aspect, travel amenities and road signs. The satisfaction level of road user toward performance of the most efficient road segment is relatively high that is 73.73%.
21 August 2025 in Jurnal Kebijakan Ekonomi dan Keuangan
Purpose – This study aims to analyze the impact of agricultural sector growth on its labor absorption in Central Java Province from 2019 to 2023Methods – Labor absorption in the agricultural sector is regressed against agricultural sector growth, labor force participation rates, and minimum wage using static panel data analysis methods. After going through model selection procedures, the best estimation model is the fixed effect model. Findings – The study's results indicate that labor absorption in the agricultural sector is not influenced by the growth of the agricultural sector itself due to efficiency and mechanization in this sector. On the contrary, the level of labor absorption follows the developments in labor force participation rates and the minimum wage at the district/city level. This indicates that labor in the agricultural sector comprises of workers who are not absorbed in the formal sector.Implication – The increase in productivity in the agricultural sector is expected to enhance labor absorption in this sector through the intensification and extensification of agriculture.Originality – This research has strategic value in increasing labor absorption in the agricultural sector to reduce unemployment in Indonesia. AbstrakTujuan – Penelitian ini bertujuan untuk menganalisis pengaruh pertumbuhan sektor pertanian terhadap penyerapan tenaga kerjanya di Propinsi Jawa Tengah periode 2019 - 2023.Metode – Penyerapan tenaga kerja sektor pertanian diregress terhadap pertumbuhan sektor pertanian, tingkat partisipasi angakatan kerja, dan upah minimum dengan menggunakan metode analisis panel data statis. Setelah melalui prosedur pemilihan model maka model estimasi yang paling baik adalah fixed effect. Temuan – Hasil studi menunjukkan bahwa penyerapan tenaga kerja di sektor pertanian tidak dipengaruhi oleh pertumbuhan sektor pertanian itu sendiri yang diduga karena efisiensi dan mekanisasi sektor pertanian. Sebaliknya, tingkat penyerapan tenaga kerja mengingkuti perkembangan tingkat partisipasi angkatan kerja dan tingkat upah minimum kabupaten/kota. Hal ini mengindikasikan bahwa tenaga kerja sektor pertanian merupakan angkatan kerja yang tidak terserap pada sektor formal.Implikasi – Peningkatan produktivitas sektor pertanian diharapkan dapat meningkatkan penyerapan tenaga kerja pada sektor ini melalui intensifikasi dan ekstensifikasi pertanian.Orisinalitas – Penelitian ini memiliki nilai strategis dalam meningkatkan penyerapan tenaga kerja di sektor petanian untuk mengurangi pengangguran di Indonesia.
25 January 2024 in Jurnal Kebijakan Ekonomi dan Keuangan
Purpose – This research aims to analyze issues in the current management of Pantai Panjang Tourism Area, and formulate its strategic analysis of tourism development. Methods – The research employs a descriptive analytical approach using primary data. The main analytical tools used for issue identification are the Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis, and strategy formulation utilizes the Quantitative Strategic Planning Matrix (QSPM). Findings – The optimization of Pantai Panjang Tourism Area's development potential involves strengthening the attraction's image, adding and maintaining facilities, conducting promotions, and reinforcing collaboration among stakeholders. Implication – With the implementation of these priority strategies, it is anticipated that the management and development of Pantai Panjang Tourism Area can be optimized, creating an engaging tourism experience, and providing positive impacts for all relevant parties. Originality – This research yields a more comprehensive strategy for the development of Pantai Panjang Tourism Area. AbstrakTujuan – Penelitian ini bertujuan untuk mengidentifikasi isu pengelolaan Kawasan Wisata Pantai Panjang , serta menyusun analisis strategi pengembangan potensi wisatanya. Metode – Pendekatan penelitian adalah bersifat deskriptif analitik pada data primer. Alat analisis utama yang digunakan untuk mengindentifikasikan isu dan permasalahan adalah Strength, Weakness, Opportunity, and Threat (SWOT). Sementara itu perumusan strategi menggunakan Quantitatif Strategic Planning Matrix (QSPM) Temuan – Optimalisasi pengembangan potensi Kawasan Wisata Pantai Panjang adalah berupa penguatan dari citra atraksi itu sendiri, penambahan dan perawatan beberapa fasilitas, melakukan promosi, dan penguatan kerjasama antar stakeholder. Implikasi – Dengan implementasi strategi prioritas tersebut, diharapkan dapat mengoptimalkan pengelolaan dan pengembangan Kawasan Wisata Pantai Panjang, menciptakan pengalaman wisata yang menarik, dan memberikan dampak positif bagi semua pihak terkait. Orisinalitas – Penelitian ini menghasilkan strategi pengembangan Kawasan Wisata Pantai Panjang secara lebih komprehensif