The Determinants of Unemployment Insurance Participation: An Application of Theory of Planned Behaviour

Abstract

Unemployment is one of the economic disorders that affect the economic growth rate. The recent pandemic outbreak has turned the medical crisis into a global financial downturn, threatening the health and employment of people around the world. Unemployment insurance is intended to assist workers with partial and momentary income replacement, access to skill training, and job placement assistance during their unemployment period. The scheme was launched in Indonesia on March 2021. This study analyzed the intention effect toward participation and the effect of attitude, subjective norms, and perceived behavioral control towards the intention to participate using the Theory of Planned Behaviour. The study used 200 participants of BPJS Ketenagakerjaan in the DKI Jakarta regional office as respondents. Binary logistic regression and SEM analysis are used in this study. The result showed that intention significantly affects participation in unemployment insurance. Attitude toward behavior, subjective norms, and perceived behavioral control positively and significantly influence the intention to participate. Subjective norm is significant as an intervening variable between attitude and perceived behavioral control toward the intention to participate. Thus, strategies focusing on these factors can increase participation in the unemployment insurance scheme.