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The effect of idiosyncratic shocks on labor market outcomes of informal households in Indonesia

The informal households are considered to be the most vulnerable to any idiosyncratic shocks rather than the formal ones. Unfortunately, the established literatures mostly do not specifically emphasize the analysis of this group. This study contributes to literatures on the specific analysis on...

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Main Authors: Santoso, Rokhedi Priyo, Sriyana, Jaka
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2020
Online Access:http://journalarticle.ukm.my/16868/1/jeko_54%282%29-2.pdf
http://journalarticle.ukm.my/16868/
https://www.ukm.my/fep/jem/content/2020-2.html
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spelling my-ukm.journal.168682021-06-24T16:15:41Z http://journalarticle.ukm.my/16868/ The effect of idiosyncratic shocks on labor market outcomes of informal households in Indonesia Santoso, Rokhedi Priyo Sriyana, Jaka The informal households are considered to be the most vulnerable to any idiosyncratic shocks rather than the formal ones. Unfortunately, the established literatures mostly do not specifically emphasize the analysis of this group. This study contributes to literatures on the specific analysis on the effects of idiosyncratic shocks namely sickness, death, and job loss on the labor market outcomes of informal households in Indonesia. The analytical method used is the estimation of panel data with a fixed-effect model to control for unobserved heterogeneity. The data consists of 3,755 informal households taken from Indonesia Family Life Survey (IFLS) in the period of 2007/2008 and 2014/2015. Estimated results indicate that illness and job loss significantly reduce earning of self-employed households, while the number of working hours remains unchanged. On the other hand, the working hours of causal households in agriculture significantly increase when a family member is sick. Even though they work longer, their earning remains constant. These findings indicate that shocks cause a significant decline in the economic welfare of the informal households in Indonesia. Penerbit Universiti Kebangsaan Malaysia 2020 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/16868/1/jeko_54%282%29-2.pdf Santoso, Rokhedi Priyo and Sriyana, Jaka (2020) The effect of idiosyncratic shocks on labor market outcomes of informal households in Indonesia. Jurnal Ekonomi Malaysia, 54 (2). pp. 13-27. ISSN 0127-1962 https://www.ukm.my/fep/jem/content/2020-2.html
institution Universiti Kebangsaan Malaysia
building Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description The informal households are considered to be the most vulnerable to any idiosyncratic shocks rather than the formal ones. Unfortunately, the established literatures mostly do not specifically emphasize the analysis of this group. This study contributes to literatures on the specific analysis on the effects of idiosyncratic shocks namely sickness, death, and job loss on the labor market outcomes of informal households in Indonesia. The analytical method used is the estimation of panel data with a fixed-effect model to control for unobserved heterogeneity. The data consists of 3,755 informal households taken from Indonesia Family Life Survey (IFLS) in the period of 2007/2008 and 2014/2015. Estimated results indicate that illness and job loss significantly reduce earning of self-employed households, while the number of working hours remains unchanged. On the other hand, the working hours of causal households in agriculture significantly increase when a family member is sick. Even though they work longer, their earning remains constant. These findings indicate that shocks cause a significant decline in the economic welfare of the informal households in Indonesia.
format Article
author Santoso, Rokhedi Priyo
Sriyana, Jaka
spellingShingle Santoso, Rokhedi Priyo
Sriyana, Jaka
The effect of idiosyncratic shocks on labor market outcomes of informal households in Indonesia
author_facet Santoso, Rokhedi Priyo
Sriyana, Jaka
author_sort Santoso, Rokhedi Priyo
title The effect of idiosyncratic shocks on labor market outcomes of informal households in Indonesia
title_short The effect of idiosyncratic shocks on labor market outcomes of informal households in Indonesia
title_full The effect of idiosyncratic shocks on labor market outcomes of informal households in Indonesia
title_fullStr The effect of idiosyncratic shocks on labor market outcomes of informal households in Indonesia
title_full_unstemmed The effect of idiosyncratic shocks on labor market outcomes of informal households in Indonesia
title_sort effect of idiosyncratic shocks on labor market outcomes of informal households in indonesia
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2020
url http://journalarticle.ukm.my/16868/1/jeko_54%282%29-2.pdf
http://journalarticle.ukm.my/16868/
https://www.ukm.my/fep/jem/content/2020-2.html
_version_ 1703961601643642880
score 13.211869

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