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JOB FORMALITY AND EARNINGS DIFFERENCES AMONG MIGRANTS AND NON-MIGRANTS: EVIDENCE FROM FOUR INDONESIAN CITIES

Pamudi Banjitha Abeynayake Senadheerage (), Gareth Leeves () and Audrey K. L. Siah
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Pamudi Banjitha Abeynayake Senadheerage: Department of Economics, Monash University Malaysia, Jalan Lagoon Selatan, Bandar Sunway, 47500 Subang Jaya, Selangor, Malaysia
Audrey K. L. Siah: Department of Economics, Monash University Malaysia, Jalan Lagoon Selatan, Bandar Sunway, 47500 Subang Jaya, Selangor, Malaysia

The Singapore Economic Review (SER), 2021, vol. 66, issue 03, 653-683

Abstract: Informal employment is a critical source of income for both internal migrants and non-migrants. This study uses the Rural–Urban Migration in Indonesia (RUMiI) project data for 2008 and 2009 to investigate the role of informal employment in earnings among internal migrants and non-migrants in Indonesia while considering the broader nature of informal employment and remuneration. Results show that when using a detailed measure of informality, income consequences of more intensive informal employment are severe, which had not been recognised in the literature. Some of the largest earnings reductions resulting from moving to more informal employment were experienced by non-migrants.

Keywords: Internal migration; informal employment; Indonesia; remuneration; panel data (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1142/S0217590820500204

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