PENGEMBANGAN MODEL PENAWARAN TENAGA KERJA DENGAN MENGGUNAKAN FAKTOR TRANSFER ANTAR RUMAH TANGGA DI INDONESIA

Suarni, Norawati (2017) PENGEMBANGAN MODEL PENAWARAN TENAGA KERJA DENGAN MENGGUNAKAN FAKTOR TRANSFER ANTAR RUMAH TANGGA DI INDONESIA. Doctoral thesis, Universitas Andalas.

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Abstract

ABSTRACT The problem of labor is a complex and large problem, complex because the problem affects and is influenced by many factors that interact with a pattern that is not always easily understood to be large because it involves millions of lives. The estimation of the function of labor supply is a popular tool for looking at labor dynamics. First, through the application of the backward bending supply curve concept, researchers can see the effect of changes in wages on the time allocated by people to work, which is a standard analysis of labor supply. Second, because of the simultaneous relationship between income (wages) and working hours, the estimation of the labor supply function is usually carried out simultaneously with the estimation of earnings function which if done in a cross-section is a function of demand for labor at the regional level. As a result, the analysis becomes very rich, especially for the purpose of comparative statistics, because simultaneously the estimated function of demand and supply of labor is obtained. Another development that needs to be noted of course is the method of estimating dynamic labor supply. In terms of cases, developments occur along with the more complete data needed to make estimates. The same model can also be applied to look at the impact of government transfers on labor supply, because transfers from the government can be viewed as negative tax. What has not been widely seen is the impact of transfers between households on labor supply. This is understandable, because the phenomenon of transfers between individuals (including between households and also between generations) is very prominent in developing countries compared to developed countries, while many innovative studies are conducted by researchers in developed countries. In developing countries, to a certain extent, transfers between households constitute "substitution" for low transfers from the government to households. The purpose of this study is (1) to find out whether there is an altruism phenomenon or transfer between households in Indonesia, (2) To determine the role of transfers between households in the function of labor supply in Indonesia. Empirical testing is carried out using the 2014 IFLS (Indonesian Family Life Survey) data. Testing the existence of the phenomenon of transfers between households or altruism is carried out using the inter-household transfer model, while testing the labor supply model with altruism is done using the Heckit method (Heckman Tobin` s Probit). Theoretically it can be shown, that altruism affects the specification of the labor supply function through changes in the specification of utility functions. The model of the labor supply function that is able to accommodate these ideas is the function of offering labor with altruism, which is characterized by the existence of variable wages and assets of other people in the group of independent variables that affect one's working hours. Based on the results of the study, it can be concluded that theoretically it can be shown, that altruism affects the specification of the labor supply function through changes in the specification of utility functions. With the existence of altruism, utility functions that are built to produce labor supply functions are not only influenced by the consumption and leisure time of the individual concerned, but are also influenced by the consumption of others. Empirically through the inter-household transfer model it can be proven that there is altruism or altruistic behavior in Indonesia. The results of this study also provide a clearer picture of the phenomenon of transfers between households in Indonesia. First, the phenomenon of transfers between households turns out to be wider than just parental relations between parents and children (and siblings), but also involves other people outside the relationship. Second, the fact that the influence of recipient household asset value is not significant on the value of the received transfer (while the recipient household income variable is negatively related to the transfer value) indicates that when giving to other people, Indonesians tend to ignore the recipient's asset value and only see income and economic disruption as an important consideration. Keywords: Labor Supply, Altruism, Inter-Household Transfer, Elasticity

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