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

Mayang Rizky, Daniel Suryadarma and Asep Suryahadi

No wp-2020-143, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

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.

Keywords: Earnings; Indonesia; Informal sector; Long-run effects (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-dev, nep-iue and nep-sea
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Working Paper: Progress and Stagnation in the Livelihood of Informal Workers in an Emerging Economy: Long-Term Evidence from Indonesia
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Persistent link: https://EconPapers.repec.org/RePEc:unu:wpaper:wp-2020-143

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