FACTORS AFFECTING LABOR PARTICIPATION OF MARRIED WOMEN IN INFORMAL SECTOR IN WEST SUMATRA

DINI, DEFANNY (2015) FACTORS AFFECTING LABOR PARTICIPATION OF MARRIED WOMEN IN INFORMAL SECTOR IN WEST SUMATRA. Diploma thesis, UPT. Perpustakaan Unand.

Text 201508201222th_gabungan autosaved.pdf - Published Version Restricted to Repository staff only Download (2MB)

Abstract

Background Human resources is one part of economics that specifically discusses and analyze the principles of efficient use of labor and human capability to process production resources and manpower to meet the needs of the man himself. This is in line with the direction of the development of Indonesia, which is integral human development. Integral human development covers various aspects including education and training as well as protection of the rights and guarantees a decent life (Simanjuntak, 2001) One of the problems in developing countries, especially in Indonesia is unbalance the formal and informal sectors of the economy, so that the majority of Indonesian economical level is sustained by the informal sector. In Indonesia estimated the number of informal sector workers is greater than the formal sector workers. This is due to the limited absorptive capacity of the formal sector of the workforce. Moreover, at the formal sector workforce requires good education and skill, while most Indonesian workers have low education. During development, the role and participation of the entire people of Indonesia regardless of whatever group it is necessary for the fluency development. There is no exception to the role of woman workers which are now beginning to rise. Women began to enter the field of work there, both in the formal and informal sectors. In the formal sector, such as offices, and other agencies, many women began to occupy the important positions, which are usually held by men. In the informal sector, women were hugely involved. Various businesses and jobs done by women in the informal sector, such as business, as sellers (workers), and many other types of employment. (Sari, Novita, 2008) Nowadays, women did not just rely on the income from their husband as the backbone of the family. Many of them actively involved, due to the meet of the needs of the household. The problem of low household income led women into workplace in searching for additional revenue with working in the informal sector. This fact shows that women are not only play limited role as a housewife. Household socio-economic demands are heavy enough to encourage women to adding the family income, especially in poor families. Working in the informal sector in general needs more educated workers that relatively compared to workers in the formal sector. By judging from the hours of work, most workers in the informal sector, works with very long working hours, however their income are still very low. From gender perspective, woman who tends to work in the informal sectors are mostly married. This is can be seen both urban and rural areas. The most type of work that do by married women in the informal sector are as energy sales efforts, and mostly work with less working hours of 25 hours a week (Isnarti Hasan, 1999). According Saptandari (2005) The presence of woman is not just only a complement reproductive function, but women also contribute significantly to the economic viability, well-being of households and communities. So that need for real and sustained effort. Because of the assumption that over the years, with choosing the right policy of empowerment of women, the government not only intends to improve the position of women in front of their husbands or male, but more than it is to explore the potential and also provide an opportunity for women to look actively in strengthening functions supporting the household economy. According Oey (1989) in his article, he state that woman has long participated in the job market. Entering the labor market today for most women becomes a necessity, because of the necessary for the needs is too much great for a husband alone. Nowadays challenge, the income of woman becomes much more essential for the survival of the households. Labor force participation rate of married woman is increasing due to the effects of supply side and demand side. On the supply side, the increase is influenced by average education level of woman which is getting better. Moreover, it is accompanied by the growing social acceptance in the community over the presence of married women who work outside the home. On the demand side, economic development (i.e in terms of production) requires women workers who have thoroughness and diligence (such as textile and garment industry, as well as other industries). Rapid changes in such conditions can affect the labor market through the changing needs of society, which is an important element in determining the demand for goods and services in the economy (Aris Ananta, 1996). Today, the need of woman participation is very large in the era of development, especially when the enactment of a development model based on community. The main reason of this policy actually is a woman holding a number of central functions in the family as well as an economic resource that is no less important than men. The presence of woman in the household not just complement reproductive function, but many studies suggest that women often contributes significantly to the economic viability and well-being of households and communities. (Elfindri and Nasri, 2004). Based on the level of education, low level of education will encourage someone to work in the informal sector for subsistence. In the level of education, women who worked in informal sector typically has a low level of education. The age range of women working in the informal sector is typically above 40 years old or more. This is because in age, the woman is slightly apart from taking care of children and household. So that women have free time and more flexibility to work the informal sector to help fill up the necessary of family. This is because age does not become a hindrance to work in the informal sector. Household Income, especially level of the husband’s income is an important role in women's decision to enter the labor market. Research conducted by Wiwit Riyani AF, et al (2001) which explains that housewives in Purworejo who decided not to work due to the husband's income which was considered sufficient to fill up the necessary of the family. Labor force participation of married women depend on the husband's ability to generate revenue. If the husband's income is still not able to fill up the necessary of the family, then the wife will give assistance to complete the needs of the household. Sonny Sumarsono (2003) also explains that large income households relative to the cost of living. It tends to minimize the number of family members to work, so the relatively low LFPR. In the other hand, family living expenses are very large relative to income tends to increase the number of family members to enter the world of work, so that the relative LFPR increased. That is, when the amount of family income are already relatively large, then the decision of the family, in this case the housewife's work to be relatively small. From the above discussion, the participation of married women working in the informal sector in this research has several factors that affect: it is the education, age, and husband income. If we observe more things behind, low family economic level plays a role here to encourage women to enter the economic activity as a breadwinner and also in order to add their income. With the majority of low social background, then the informal sector or alternative manual labor becomes possible for women to enter the workforce. In this case the informal sector is considered very strategic and functional as a survival strategy. Based on the description above, the writer interested to do research on female workers with title "FACTORS AFFECTING LABOR PARTICIPATION OF MARRIED WOMEN IN INFORMAL SECTOR IN WEST SUMATRA"

Actions (login required)

View Item