Open AccessTHE LABOR SHIFTING IN INDONESIAN LABOR MARKET
Author(s) -
Meily Ika Permata,
Yanfitri Yanfitri,
Andry Prasmuko
Publication year - 2010
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 4
ISSN - 1410-8046
DOI - 10.21098/bemp.v12i3.373
Subject(s) - indonesian , labour economics , unemployment , labor demand , economics , phenomenon , primary sector of the economy , secondary labor market , labor mobility , labor relations , informal sector , economic sector , market economy , business , economy , wage , economic growth , philosophy , linguistics , physics , quantum mechanics
This paper analyzes the labor shifting phenomenon in Indonesian labor market. Labor shifting phenomenon in developing countries, including Indonesia, is considered to be the reason of stable movement from the supply perspective. By using Sakernas data year 1998-2008, this paper analyzes the labor shifting phenomenon, both the direction of labor movement and the characteristics of the shifting labor.The main conclusions obtained in this research are, first, there is no structural break in Indonesian labor market. Second, although most of labors tend to remain in the same sector or intra-sector, the analysis shows there is tendency for the labor to move from non formal sectors especially to Agricultural and Trade sectors. Third, the model estimation result with a series of controlled category shows the biggest three probability of not shifting and remaining in the same sectors are in Electricity sector (70,15%), Financial sector (55,8%) and Mining sector (53,13%). On the other side, the biggest labor mobility opportunity to conduct shifting is on Industry sector (80.14%), Construction sector (64.3%), and Transportation sector (62.4%).JEL classification: J23, J62, J64Keywords: Demand for Labor, Job Mobility, Labor shifting, Unemployment