Demographic And Employment Characteristics Associated With Underemployment In Java And Non-Java Provinces

Abstract

Labour force utilization policy in Indonesia mainly focuses on the unemployment rate, which does not adequately measure the whole aspect of labour utilization. The underemployment rate can provide deeper measurement by capturing the condition where the part-time worker would like an additional working hour to increase income. Underemployment rate can capture the condition where the worker are not fully utilized. Indonesia has a problem with underemployment, where there is a gap in the underemployment rate in Java and Non-Java Provinces. The average underemployment rate in provinces which located outside Java are higher than the provinces in Java. This condition might related to the characteristics of the worker. It is required to assess what is the characteristics that define underemployment status. To investigate the characteristics that associated with underemployment status, multinomial probit regression on Indonesian National Labour Force Survey 2021 (SAKERNAS 2021) data was used. There are 3 model in this research, the general national model, worker in Java model and non-Java worker model. The characteristics that being observed are the demographic and employment characteristics. This research finds that young females with a degree who live in rural areas and work in informal and agricultural sectors are more prone to underemployment. There are noticeable differences in the magnitude of associated factors of underemployment between Java and Non-Java workers.