The Informal Workers’ Wage Levels and Factors Influencing Them
Keywords:
workers, informal, wages, health, IndonesiaAbstract
Labour issues are still a common problem, especially in developing countries in the informal sector, in Indonesia the informal sector has increased in recent years, this also affects the level of wages received by informal workers. This study tries to explain how the role of education, employment and health on changes in wages of informal workers. The author uses a panel data regression approach to find out the effect on 34 provinces in Indonesia. The results of this study show that education and employment cause the wages of informal workers to fall, the high number of layoffs makes workers switch to the informal sector with lower wages. Health factors play a positive role in increasing wages, health affects wages through increased labour productivity. The government needs to make a policy in maintaining wage stability such as reducing dependence on labour absorption in the manufacturing sector through the expansion of the agricultural sector which is directly supported by the state with a predetermined wage. In addition, it is necessary to improve the skills of workers at various levels of education, age and gender in order to strengthen the bargaining power of workers.
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