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 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.

Bibliographic Details

Main Authors:	Naidoo, Darian, Packard, Truman, Auwalin, Ilmiawan
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2015-11
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
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