Mobility, Scarring and Job Quality in Indonesia’s Labor Market

This paper investigates the occupational mobility and job quality of young people in Indonesia and relates this to the concept of “scarring.” The concept of labor market scarring in this paper is the occurrence of low or zero returns to certain typ...

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Main Authors:	Naidoo, Darian, Packard, Truman, Auwalin, Ilmiawan
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2015
Subjects:	WAGE IMPACT SALARIED EMPLOYMENT JOBS EMPLOYMENT PERMANENT WORKER UNEMPLOYMENT RATES FAMILY LABOR WAGE EMPLOYMENT WORK EXPERIENCE INFORMAL EMPLOYMENT RETIREMENT INFORMAL SECTOR YOUTH EMPLOYMENT EMPLOYMENT STATUS JOB MATCH LABOR FORCE HEALTH INSURANCE AGGREGATE UNEMPLOYMENT JOB UNEMPLOYMENT SPELLS LONG TERM WAGE LABOR ECONOMICS PRIVATE SECTOR PAYING JOBS PUBLIC SECTOR EMPLOYMENT PERSISTENT UNEMPLOYMENT CASUAL WORKERS TEMPORARY WORKERS CONTINGENT WORKERS EMPLOYMENT OUTCOMES WAGE GROWTH LABOR MARKET EXPERIENCE JOB CREATION SCHEMES JOB SEEKERS UNEMPLOYMENT DURATION TEMPORARY WORK SMALL BUSINESS LABOUR MARKET INSTITUTIONS SELF‐ EMPLOYMENT PERMANENT EMPLOYMENT HUMAN RESOURCE LABOR MARKET UNEMPLOYED WORKERS PRIVATE SECTOR WORKERS HUMAN RESOURCE PRACTICES EDUCATIONAL ATTAINMENT DISPLACEMENT WORKER WAGE RATES UNEMPLOYMENT SPELL UNEMPLOYED YOUTH ADULT MALES LABOR PRODUCTIVITY UNEMPLOYED OLDER WORKERS FULL TIME JOB JOB TRAINING WAGE SUBSIDIES EARNINGS LOSSES SELF‐EMPLOYED JOB STATUS NATURAL RATE OF UNEMPLOYMENT LABOR HIGH WAGES JOB SEARCH JOB SEPARATION WAGE SECTOR EXPECTED WAGES PERMANENT WORKERS UNEMPLOYMENT HUMAN CAPITAL CONTINGENT WORK AGGREGATE UNEMPLOYMENT RATE WORKERS DISPLACED WORKERS UNEMPLOYMENT RATE JOB SEEKER JOB CREATION LABOR MARKET SEGMENTATION LABOR MARKET EXPERIENCES LABOR CONTRACT LABOR MARKET CHARACTERISTICS PAYING JOB OCCUPATIONS LABOUR MARKET OCCUPATION EMPLOYMENT SPELLS SAFETY NET SELF‐ EMPLOYED LABOR MARKET OUTCOMES LABOR RELATIONS UNEMPLOYMENT EXPERIENCE HOUSEHOLD CHARACTERISTICS LABOR MARKETS EARNING OCCUPATIONAL MOBILITY PRIVATE SECTOR JOBS COLLEGE GRADUATE CASUAL WORKER LABOUR MARKET OUTCOMES YOUTH UNEMPLOYMENT PRIVATE SECTOR EMPLOYEE WORKING CONDITIONS UNEMPLOYED INDIVIDUAL HUMAN RESOURCES EMPLOYMENT PROBABILITY EMPLOYEE WAGE DIFFERENTIALS WAGE EFFECTS JOB SECURITY LABOUR EMPLOYMENT PROSPECTS SELF‐EMPLOYMENT JOB DISPLACEMENT EMPLOYEES
Online Access:	http://documents.worldbank.org/curated/en/2015/11/25257495/mobility-scarring-job-quality-indonesia’s-labor-market http://hdl.handle.net/10986/23449

id	okr-10986-23449
recordtype	oai_dc
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	WAGE IMPACT SALARIED EMPLOYMENT JOBS EMPLOYMENT PERMANENT WORKER UNEMPLOYMENT RATES FAMILY LABOR WAGE EMPLOYMENT WORK EXPERIENCE INFORMAL EMPLOYMENT RETIREMENT INFORMAL SECTOR YOUTH EMPLOYMENT EMPLOYMENT STATUS JOB MATCH LABOR FORCE HEALTH INSURANCE AGGREGATE UNEMPLOYMENT JOB UNEMPLOYMENT SPELLS LONG TERM WAGE LABOR ECONOMICS PRIVATE SECTOR PAYING JOBS PUBLIC SECTOR EMPLOYMENT PERSISTENT UNEMPLOYMENT CASUAL WORKERS TEMPORARY WORKERS CONTINGENT WORKERS EMPLOYMENT OUTCOMES WAGE GROWTH LABOR MARKET EXPERIENCE WAGE IMPACT JOB CREATION SCHEMES JOB SEEKERS WORK EXPERIENCE UNEMPLOYMENT DURATION TEMPORARY WORK SMALL BUSINESS JOB CREATION SCHEMES LABOUR MARKET INSTITUTIONS SELF‐ EMPLOYMENT PERMANENT EMPLOYMENT HUMAN RESOURCE JOB MATCH LABOR MARKET AGGREGATE UNEMPLOYMENT UNEMPLOYED WORKERS PRIVATE SECTOR WORKERS HUMAN RESOURCE PRACTICES EDUCATIONAL ATTAINMENT DISPLACEMENT LONG TERM WAGE EDUCATIONAL ATTAINMENT WORKER WAGE RATES UNEMPLOYMENT SPELL UNEMPLOYED YOUTH ADULT MALES LABOR PRODUCTIVITY UNEMPLOYED OLDER WORKERS FULL TIME JOB JOB TRAINING HUMAN RESOURCE PRACTICES WAGE SUBSIDIES EARNINGS LOSSES SELF‐EMPLOYED UNEMPLOYMENT RATES JOB STATUS NATURAL RATE OF UNEMPLOYMENT JOB TRAINING LABOR LABOR PRODUCTIVITY HIGH WAGES JOB SEARCH JOB SEPARATION WAGE SECTOR EXPECTED WAGES PERMANENT WORKERS UNEMPLOYMENT LABOR MARKET HUMAN CAPITAL CONTINGENT WORK AGGREGATE UNEMPLOYMENT RATE WORKERS DISPLACED WORKERS YOUTH EMPLOYMENT UNEMPLOYMENT RATE TEMPORARY WORK UNEMPLOYMENT SPELLS JOB STATUS JOB SEEKER JOB CREATION LABOR MARKET SEGMENTATION LABOR MARKET EXPERIENCES WAGE RATES CASUAL WORKERS LABOR CONTRACT FAMILY LABOR LABOR MARKET CHARACTERISTICS WAGE SUBSIDIES UNEMPLOYMENT DURATION PAYING JOB PAYING JOB OCCUPATIONS JOB SEARCH LABOR MARKET EXPERIENCES OLDER WORKERS LABOUR MARKET OCCUPATION EMPLOYMENT SPELLS SAFETY NET SELF‐ EMPLOYED EMPLOYMENT STATUS PERMANENT EMPLOYMENT LABOR MARKET CHARACTERISTICS INFORMAL SECTOR LABOR MARKET OUTCOMES JOB CREATION LABOR RELATIONS PRIVATE SECTOR UNEMPLOYMENT EXPERIENCE HOUSEHOLD CHARACTERISTICS LABOR MARKETS EARNING WAGE GROWTH LABOR FORCE OCCUPATIONAL MOBILITY JOB SEPARATION NATURAL RATE OF UNEMPLOYMENT WAGE SECTOR PRIVATE SECTOR JOBS HUMAN CAPITAL CONTINGENT WORK SALARIED EMPLOYMENT PERMANENT WORKERS PUBLIC SECTOR EMPLOYMENT COLLEGE GRADUATE CASUAL WORKER AGGREGATE UNEMPLOYMENT RATE LABOUR MARKET OUTCOMES YOUTH UNEMPLOYMENT PRIVATE SECTOR EMPLOYEE EXPECTED WAGES UNEMPLOYMENT SPELL PAYING JOBS HUMAN RESOURCE WORKING CONDITIONS UNEMPLOYED INDIVIDUAL HUMAN RESOURCES EMPLOYMENT PROBABILITY LABOR MARKET OUTCOMES TEMPORARY WORKERS CONTINGENT WORKERS EMPLOYEE LABOR MARKET SEGMENTATION WAGE DIFFERENTIALS WAGE EFFECTS PRIVATE SECTOR WORKERS INFORMAL EMPLOYMENT HOUSEHOLD CHARACTERISTICS JOB SECURITY YOUTH UNEMPLOYMENT UNEMPLOYED YOUTH LABOUR EMPLOYMENT PROBABILITY LABOR MARKETS EMPLOYMENT PROSPECTS SELF‐EMPLOYMENT WAGE EMPLOYMENT JOB SEEKER JOB DISPLACEMENT EMPLOYEES
spellingShingle	WAGE IMPACT SALARIED EMPLOYMENT JOBS EMPLOYMENT PERMANENT WORKER UNEMPLOYMENT RATES FAMILY LABOR WAGE EMPLOYMENT WORK EXPERIENCE INFORMAL EMPLOYMENT RETIREMENT INFORMAL SECTOR YOUTH EMPLOYMENT EMPLOYMENT STATUS JOB MATCH LABOR FORCE HEALTH INSURANCE AGGREGATE UNEMPLOYMENT JOB UNEMPLOYMENT SPELLS LONG TERM WAGE LABOR ECONOMICS PRIVATE SECTOR PAYING JOBS PUBLIC SECTOR EMPLOYMENT PERSISTENT UNEMPLOYMENT CASUAL WORKERS TEMPORARY WORKERS CONTINGENT WORKERS EMPLOYMENT OUTCOMES WAGE GROWTH LABOR MARKET EXPERIENCE WAGE IMPACT JOB CREATION SCHEMES JOB SEEKERS WORK EXPERIENCE UNEMPLOYMENT DURATION TEMPORARY WORK SMALL BUSINESS JOB CREATION SCHEMES LABOUR MARKET INSTITUTIONS SELF‐ EMPLOYMENT PERMANENT EMPLOYMENT HUMAN RESOURCE JOB MATCH LABOR MARKET AGGREGATE UNEMPLOYMENT UNEMPLOYED WORKERS PRIVATE SECTOR WORKERS HUMAN RESOURCE PRACTICES EDUCATIONAL ATTAINMENT DISPLACEMENT LONG TERM WAGE EDUCATIONAL ATTAINMENT WORKER WAGE RATES UNEMPLOYMENT SPELL UNEMPLOYED YOUTH ADULT MALES LABOR PRODUCTIVITY UNEMPLOYED OLDER WORKERS FULL TIME JOB JOB TRAINING HUMAN RESOURCE PRACTICES WAGE SUBSIDIES EARNINGS LOSSES SELF‐EMPLOYED UNEMPLOYMENT RATES JOB STATUS NATURAL RATE OF UNEMPLOYMENT JOB TRAINING LABOR LABOR PRODUCTIVITY HIGH WAGES JOB SEARCH JOB SEPARATION WAGE SECTOR EXPECTED WAGES PERMANENT WORKERS UNEMPLOYMENT LABOR MARKET HUMAN CAPITAL CONTINGENT WORK AGGREGATE UNEMPLOYMENT RATE WORKERS DISPLACED WORKERS YOUTH EMPLOYMENT UNEMPLOYMENT RATE TEMPORARY WORK UNEMPLOYMENT SPELLS JOB STATUS JOB SEEKER JOB CREATION LABOR MARKET SEGMENTATION LABOR MARKET EXPERIENCES WAGE RATES CASUAL WORKERS LABOR CONTRACT FAMILY LABOR LABOR MARKET CHARACTERISTICS WAGE SUBSIDIES UNEMPLOYMENT DURATION PAYING JOB PAYING JOB OCCUPATIONS JOB SEARCH LABOR MARKET EXPERIENCES OLDER WORKERS LABOUR MARKET OCCUPATION EMPLOYMENT SPELLS SAFETY NET SELF‐ EMPLOYED EMPLOYMENT STATUS PERMANENT EMPLOYMENT LABOR MARKET CHARACTERISTICS INFORMAL SECTOR LABOR MARKET OUTCOMES JOB CREATION LABOR RELATIONS PRIVATE SECTOR UNEMPLOYMENT EXPERIENCE HOUSEHOLD CHARACTERISTICS LABOR MARKETS EARNING WAGE GROWTH LABOR FORCE OCCUPATIONAL MOBILITY JOB SEPARATION NATURAL RATE OF UNEMPLOYMENT WAGE SECTOR PRIVATE SECTOR JOBS HUMAN CAPITAL CONTINGENT WORK SALARIED EMPLOYMENT PERMANENT WORKERS PUBLIC SECTOR EMPLOYMENT COLLEGE GRADUATE CASUAL WORKER AGGREGATE UNEMPLOYMENT RATE LABOUR MARKET OUTCOMES YOUTH UNEMPLOYMENT PRIVATE SECTOR EMPLOYEE EXPECTED WAGES UNEMPLOYMENT SPELL PAYING JOBS HUMAN RESOURCE WORKING CONDITIONS UNEMPLOYED INDIVIDUAL HUMAN RESOURCES EMPLOYMENT PROBABILITY LABOR MARKET OUTCOMES TEMPORARY WORKERS CONTINGENT WORKERS EMPLOYEE LABOR MARKET SEGMENTATION WAGE DIFFERENTIALS WAGE EFFECTS PRIVATE SECTOR WORKERS INFORMAL EMPLOYMENT HOUSEHOLD CHARACTERISTICS JOB SECURITY YOUTH UNEMPLOYMENT UNEMPLOYED YOUTH LABOUR EMPLOYMENT PROBABILITY LABOR MARKETS EMPLOYMENT PROSPECTS SELF‐EMPLOYMENT WAGE EMPLOYMENT JOB SEEKER JOB DISPLACEMENT EMPLOYEES Naidoo, Darian Packard, Truman Auwalin, Ilmiawan Mobility, Scarring and Job Quality in Indonesia’s Labor Market
geographic_facet	East Asia and Pacific Indonesia
relation	Policy Research Working Paper;No. 7484
description	This paper investigates the occupational mobility and job quality of young people in Indonesia and relates this to the concept of “scarring.” The concept of labor market scarring in this paper is the occurrence of low or zero returns to certain types of work (for example, self-employment). Scarring is expected to occur whenever an individual spends periods working in occupations in which their human capital is either stagnant or deteriorating. Fixed effects estimations using panel data from the Indonesian Family Life Survey reveal that a period in self-employment is associated with negative returns for youth (about 3 to 4 percent per year penalty), but not for older adults. In addition, there are clear patterns of persistence in self-employment over time with few individuals progressing from petty self-employment to businesses with permanent workers.
format	Working Paper
author	Naidoo, Darian Packard, Truman Auwalin, Ilmiawan
author_facet	Naidoo, Darian Packard, Truman Auwalin, Ilmiawan
author_sort	Naidoo, Darian
title	Mobility, Scarring and Job Quality in Indonesia’s Labor Market
title_short	Mobility, Scarring and Job Quality in Indonesia’s Labor Market
title_full	Mobility, Scarring and Job Quality in Indonesia’s Labor Market
title_fullStr	Mobility, Scarring and Job Quality in Indonesia’s Labor Market
title_full_unstemmed	Mobility, Scarring and Job Quality in Indonesia’s Labor Market
title_sort	mobility, scarring and job quality in indonesia’s labor market
publisher	World Bank, Washington, DC
publishDate	2015
url	http://documents.worldbank.org/curated/en/2015/11/25257495/mobility-scarring-job-quality-indonesia’s-labor-market http://hdl.handle.net/10986/23449
_version_	1764453872312516608
spelling	okr-10986-234492021-04-23T14:04:15Z Mobility, Scarring and Job Quality in Indonesia’s Labor Market Naidoo, Darian Packard, Truman Auwalin, Ilmiawan WAGE IMPACT SALARIED EMPLOYMENT JOBS EMPLOYMENT PERMANENT WORKER UNEMPLOYMENT RATES FAMILY LABOR WAGE EMPLOYMENT WORK EXPERIENCE INFORMAL EMPLOYMENT RETIREMENT INFORMAL SECTOR YOUTH EMPLOYMENT EMPLOYMENT STATUS JOB MATCH LABOR FORCE HEALTH INSURANCE AGGREGATE UNEMPLOYMENT JOB UNEMPLOYMENT SPELLS LONG TERM WAGE LABOR ECONOMICS PRIVATE SECTOR PAYING JOBS PUBLIC SECTOR EMPLOYMENT PERSISTENT UNEMPLOYMENT CASUAL WORKERS TEMPORARY WORKERS CONTINGENT WORKERS EMPLOYMENT OUTCOMES WAGE GROWTH LABOR MARKET EXPERIENCE WAGE IMPACT JOB CREATION SCHEMES JOB SEEKERS WORK EXPERIENCE UNEMPLOYMENT DURATION TEMPORARY WORK SMALL BUSINESS JOB CREATION SCHEMES LABOUR MARKET INSTITUTIONS SELF‐ EMPLOYMENT PERMANENT EMPLOYMENT HUMAN RESOURCE JOB MATCH LABOR MARKET AGGREGATE UNEMPLOYMENT UNEMPLOYED WORKERS PRIVATE SECTOR WORKERS HUMAN RESOURCE PRACTICES EDUCATIONAL ATTAINMENT DISPLACEMENT LONG TERM WAGE EDUCATIONAL ATTAINMENT WORKER WAGE RATES UNEMPLOYMENT SPELL UNEMPLOYED YOUTH ADULT MALES LABOR PRODUCTIVITY UNEMPLOYED OLDER WORKERS FULL TIME JOB JOB TRAINING HUMAN RESOURCE PRACTICES WAGE SUBSIDIES EARNINGS LOSSES SELF‐EMPLOYED UNEMPLOYMENT RATES JOB STATUS NATURAL RATE OF UNEMPLOYMENT JOB TRAINING LABOR LABOR PRODUCTIVITY HIGH WAGES JOB SEARCH JOB SEPARATION WAGE SECTOR EXPECTED WAGES PERMANENT WORKERS UNEMPLOYMENT LABOR MARKET HUMAN CAPITAL CONTINGENT WORK AGGREGATE UNEMPLOYMENT RATE WORKERS DISPLACED WORKERS YOUTH EMPLOYMENT UNEMPLOYMENT RATE TEMPORARY WORK UNEMPLOYMENT SPELLS JOB STATUS JOB SEEKER JOB CREATION LABOR MARKET SEGMENTATION LABOR MARKET EXPERIENCES WAGE RATES CASUAL WORKERS LABOR CONTRACT FAMILY LABOR LABOR MARKET CHARACTERISTICS WAGE SUBSIDIES UNEMPLOYMENT DURATION PAYING JOB PAYING JOB OCCUPATIONS JOB SEARCH LABOR MARKET EXPERIENCES OLDER WORKERS LABOUR MARKET OCCUPATION EMPLOYMENT SPELLS SAFETY NET SELF‐ EMPLOYED EMPLOYMENT STATUS PERMANENT EMPLOYMENT LABOR MARKET CHARACTERISTICS INFORMAL SECTOR LABOR MARKET OUTCOMES JOB CREATION LABOR RELATIONS PRIVATE SECTOR UNEMPLOYMENT EXPERIENCE HOUSEHOLD CHARACTERISTICS LABOR MARKETS EARNING WAGE GROWTH LABOR FORCE OCCUPATIONAL MOBILITY JOB SEPARATION NATURAL RATE OF UNEMPLOYMENT WAGE SECTOR PRIVATE SECTOR JOBS HUMAN CAPITAL CONTINGENT WORK SALARIED EMPLOYMENT PERMANENT WORKERS PUBLIC SECTOR EMPLOYMENT COLLEGE GRADUATE CASUAL WORKER AGGREGATE UNEMPLOYMENT RATE LABOUR MARKET OUTCOMES YOUTH UNEMPLOYMENT PRIVATE SECTOR EMPLOYEE EXPECTED WAGES UNEMPLOYMENT SPELL PAYING JOBS HUMAN RESOURCE WORKING CONDITIONS UNEMPLOYED INDIVIDUAL HUMAN RESOURCES EMPLOYMENT PROBABILITY LABOR MARKET OUTCOMES TEMPORARY WORKERS CONTINGENT WORKERS EMPLOYEE LABOR MARKET SEGMENTATION WAGE DIFFERENTIALS WAGE EFFECTS PRIVATE SECTOR WORKERS INFORMAL EMPLOYMENT HOUSEHOLD CHARACTERISTICS JOB SECURITY YOUTH UNEMPLOYMENT UNEMPLOYED YOUTH LABOUR EMPLOYMENT PROBABILITY LABOR MARKETS EMPLOYMENT PROSPECTS SELF‐EMPLOYMENT WAGE EMPLOYMENT JOB SEEKER JOB DISPLACEMENT EMPLOYEES This paper investigates the occupational mobility and job quality of young people in Indonesia and relates this to the concept of “scarring.” The concept of labor market scarring in this paper is the occurrence of low or zero returns to certain types of work (for example, self-employment). Scarring is expected to occur whenever an individual spends periods working in occupations in which their human capital is either stagnant or deteriorating. Fixed effects estimations using panel data from the Indonesian Family Life Survey reveal that a period in self-employment is associated with negative returns for youth (about 3 to 4 percent per year penalty), but not for older adults. In addition, there are clear patterns of persistence in self-employment over time with few individuals progressing from petty self-employment to businesses with permanent workers. 2015-12-18T20:01:45Z 2015-12-18T20:01:45Z 2015-11 Working Paper http://documents.worldbank.org/curated/en/2015/11/25257495/mobility-scarring-job-quality-indonesia’s-labor-market http://hdl.handle.net/10986/23449 English en_US Policy Research Working Paper;No. 7484 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific Indonesia

Mobility, Scarring and Job Quality in Indonesia’s Labor Market

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