JSPES, Vol. 47, No. 1-2 (Spring-Summer 2022)
pp. 93-105

Female Workers in the Indonesian Informal Sector

Ikhfan Haris
Universitas Negeri Gorontalo, Indonesia

This study aims to estimate and evaluate the economic impact of increased youth employment in the Indonesian informal sector. It examines informal sector activity as an employment indicator and investment multiplier in the economic system at the macro level. Furthermore, informal sector workers’ challenges, including low work quality, low wage rate, long working hours, and lack of social security are considered. The study assesses female worker vulnerability in the informal sector, and their growing contribution to the labor market. Study results show the disparity between the informal and formal workers wages and working hours. The author argues that disparity between social security measures afforded to informal and formal workers represents discrimination and deprivation. Policy initiating and external agencies such as the International Labor Organization found increased female participation in the labor market. This has not eliminated wage, occupation and social security disparities between the men and women in the informal sector. As a result, female workers remain less financially and socially empowered than male workers.