Do Gender Disparities in Working Poverty Persist? Evidence From Indonesia’s Labor Market

Authors

  • Axellina Muara Setyanti Universitas Brawijaya
  • Muhammad Fansurullah Harsa Universitas Brawijaya

DOI:

https://doi.org/10.37058/wlfr.v7i1.362

Keywords:

Working Poverty, Gender Inequality, Informal Employment, Digital Access, Labor Market

Abstract

This study examines whether gender disparities persist in working poverty in Indonesia using microdata from the 2024 National Labor Force Survey (SAKERNAS). Employing a binary logistic regression model and heterogeneity analysis by age cohort and education level, this study investigates how gender, human capital, digital access, and structural labor market factors shape the probability of working poverty among employed individuals. The findings show that female workers are significantly more likely to experience working poverty than male workers, indicating persistent gender-based economic vulnerability in Indonesia’s labor market. Education, training, and internet use are associated with a lower probability of working poverty, highlighting the protective role of human capital development and digital inclusion. Conversely, informal employment, rural residence, and employment in agriculture are strongly associated with higher poverty risk, suggesting that working poverty is closely linked to job quality and structural labor market segmentation. The heterogeneity results reveal that gender disparities are more pronounced among workers with lower education levels and remain evident across all age groups. Robustness checks using probit and Linear Probability Model specifications confirm the stability of the main findings. These findings contribute to the working poverty literature by demonstrating that gender inequality persists across labor market segments and requires integrated policies addressing gender barriers, job quality, human capital, and inclusive digital access.

 

Penelitian ini menganalisis apakah ketimpangan gender dalam kemiskinan pekerja masih persisten di Indonesia dengan menggunakan data mikro Survei Angkatan Kerja Nasional (SAKERNAS) 2024. Dengan menggunakan model regresi logistik biner dan analisis heterogenitas berdasarkan kelompok umur serta tingkat pendidikan, penelitian ini mengkaji bagaimana gender, modal manusia, akses digital, dan faktor struktural pasar tenaga kerja memengaruhi probabilitas kemiskinan pekerja. Hasil penelitian menunjukkan bahwa pekerja perempuan memiliki kemungkinan lebih tinggi untuk mengalami kemiskinan pekerja dibandingkan laki-laki, yang mengindikasikan persistensi kerentanan ekonomi berbasis gender di pasar tenaga kerja Indonesia. Pendidikan, pelatihan, dan penggunaan internet berasosiasi dengan probabilitas kemiskinan pekerja yang lebih rendah, sehingga menegaskan peran protektif modal manusia dan inklusi digital. Sebaliknya, pekerjaan informal, tempat tinggal perdesaan, dan pekerjaan di sektor pertanian berkaitan erat dengan risiko kemiskinan yang lebih tinggi. Hasil heterogenitas menunjukkan bahwa kesenjangan gender lebih besar pada pekerja berpendidikan rendah dan tetap terlihat di seluruh kelompok umur. Uji robustness menggunakan spesifikasi probit dan Linear Probability Model mengonfirmasi stabilitas temuan utama. Temuan ini berkontribusi pada literatur kemiskinan pekerja dengan menunjukkan bahwa ketimpangan gender bertahan lintas segmen pasar tenaga kerja dan membutuhkan kebijakan terpadu yang menargetkan hambatan gender, kualitas pekerjaan, modal manusia, dan akses digital inklusif.

References

Arellano-Bover, J. (2024). Career Consequences of Firm Heterogeneity for Young Workers: First Job and Firm Size. Journal of Labor Economics, 42(2), 549–589. https://doi.org/10.1086/723500

Bilenko, Y. (2022). Labor productivity in the agriculture, structural shifts and economic growth in the Central and Eastern European countries. Agricultural and Resource Economics: International Scientific E-Journal, 8(4), 5–32Arellano-Bover, J. (2024). Career Consequences of Firm Heterogeneity for Young Workers: First Job and Firm Size. Journal of Labor Economics, 42(2), 549–589. https://doi.org/10.1086/723500

Bilenko, Y. (2022). Labor productivity in the agriculture, structural shifts and economic growth in the Central and Eastern European countries. Agricultural and Resource Economics: International Scientific E-Journal, 8(4), 5–32. https://doi.org/10.51599/are.2022.08.04.01

Busch, F. (2020). Gender Segregation, Occupational Sorting, and Growth of Wage Disparities Between Women. Demography, 57(3), 1063–1088. https://doi.org/10.1007/s13524-020-00887-3

Castellano-Álvarez, F. J., Robina-Ramírez, R., & Silva, F. (2024). Rural Areas Facing the Challenge of Economic Diversification: Threats and Opportunities. Agriculture, 14(4), 623. https://doi.org/10.3390/agriculture14040623

Chen, M. A. (2023). The Informal Economy in Comparative Perspective: Theory, Policy and Reality. The Indian Journal of Labour Economics, 66(2), 395–420. https://doi.org/10.1007/s41027-023-00444-7

Cortés, P., & Pan, J. (2023). Children and the Remaining Gender Gaps in the Labor Market. Journal of Economic Literature, 61(4), 1359–1409. https://doi.org/10.1257/jel.20221549

D’Aguanno, M. C., Gallo, G., & Luppi, M. (2026). Towards a Better Understanding of Poverty in the Italian Labour Market. Italian Economic Journal, 12(1), 343–395. https://doi.org/10.1007/s40797-025-00312-x

Denzer, M., Schank, T., & Upward, R. (2021). Does the internet increase the job finding rate? Evidence from a period of expansion in internet use. Information Economics and Policy, 55, 100900. https://doi.org/10.1016/j.infoecopol.2020.100900

Duman, A. (2023). The Gendered Relationship Between Temporary, Informal Employment and Wages: Evidence from the Turkish Labor Market. Feminist Economics, 29(4), 194–222. https://doi.org/10.1080/13545701.2023.2249000

Elsayed, A., & Shirshikova, A. (2023). The women-empowering effect of higher education. Journal of Development Economics, 163, 103101. https://doi.org/10.1016/j.jdeveco.2023.103101

Faharuddin, F., & Endrawati, D. (2022). Determinants of working poverty in Indonesia. Journal of Economics and Development, 24(3), 230–246. https://doi.org/10.1108/JED-09-2021-0151

Fang, M. L., Canham, S. L., Battersby, L., Sixsmith, J., Wada, M., & Sixsmith, A. (2019). Exploring Privilege in the Digital Divide: Implications for Theory, Policy, and Practice. The Gerontologist, 59(1), e1–e15. https://doi.org/10.1093/geront/gny037

García-Mora, F., & Mora-Rivera, J. (2023). Exploring the impacts of Internet access on poverty: A regional analysis of rural Mexico. New Media & Society, 25(1), 26–49. https://doi.org/10.1177/14614448211000650

Harris, J. (2022). Do wages fall when women enter an occupation?. Labour Economics, 74, 102102. https://doi.org/10.1016/j.labeco.2021.102102

Ivanic, M., & Martin, W. (2018). Sectoral Productivity Growth and Poverty Reduction: National and Global Impacts. World Development, 109, 429–439. https://doi.org/10.1016/j.worlddev.2017.07.004

Leoni, S. (2025). A Historical Review of the Role of Education: From Human Capital to Human Capabilities. Review of Political Economy, 37(1), 227–244. https://doi.org/10.1080/09538259.2023.2245233

Li, N., & He, M. (2024). Feminization of poverty: an analysis of multidimensional poverty among rural women in China. Humanities and Social Sciences Communications, 11(1), 568. https://doi.org/10.1057/s41599-024-03006-4

López-Roldán, P., Semenza, R., & Salvia, A. (2021). Comparing Inequalities in the Labour Market from a Segmentation Perspective. In Towards a Comparative Analysis of Social Inequalities between Europe and Latin America (pp. 65–104). Springer International Publishing. https://doi.org/10.1007/978-3-030-48442-2_3

Margarian, A., & Hundt, C. (2023). One economy, but different growth regimes: why Germany’s rural east is still lagging. Competitiveness Review: An International Business Journal, 33(7), 1–21. https://doi.org/10.1108/CR-09-2022-0130

Meng, Y., Lu, Y., & Liang, X. (2023). Does Internet use alleviate the relative poverty of Chinese rural residents? A case from China. Environment, Development and Sustainability, 26(5), 11817–11846. https://doi.org/10.1007/s10668-023-03531-3

Perzyńska, J., & Guzowska, M. K. (2024). The Feminisation of Poverty in European Union Countries—Myth or Reality? Sustainability, 16(17), 7594. https://doi.org/10.3390/su16177594

Polizzi, A., Struffolino, E., & Van Winkle, Z. (2022). Family demographic processes and in-work poverty: A systematic review. Advances in Life Course Research, 52, 100462. https://doi.org/10.1016/j.alcr.2022.100462

Putri, R. F., Sarajwati, M. K. A., Aini, F. A. N., Setiacahyandari, H. K., Dairina, I., & Dewi, A. K. (2023). Formal-Informal Employment and Poverty Dynamics: A Case Study of Mentawai Islands Regency, 2019-2021. IOP Conference Series: Earth and Environmental Science, 1233(1), 012034. https://doi.org/10.1088/1755-1315/1233/1/012034

Reddick, C., Enriquez, R., Harris, R., & Flores, J. (2024). Understanding the levels of digital inequality within the city: An analysis of a survey. Cities, 148, 104844. https://doi.org/10.1016/j.cities.2024.104844

Risman, B. J. (2018). Gender as a Social Structure (pp. 19–43). https://doi.org/10.1007/978-3-319-76333-0_2

Roa, M. J., Di Giannatale, S., Villegas, A., & Barboza, J. (2023). Are women more financially vulnerable than men? A tale of missed economic opportunities from Latin America. Development Policy Review, 41(6). https://doi.org/10.1111/dpr.12725

Sharma, A., Dean, B. P., & Bezjian, J. (2025). Reducing poverty by digitization: what role do information and communication technologies (ICTs) play in reducing poverty? Journal of Strategy and Management, 18(1), 96–109. https://doi.org/10.1108/JSMA-06-2023-0129

Sultana, N., Rahman, M. M., & Khanam, R. (2022). Informal Sector Employment and Economic Growth: Evidence from Developing Countries in SDG Perspective. Sustainability, 14(19), 11989. https://doi.org/10.3390/su141911989

Ugargol, A. P., & Parvathy, L. (2023). Precarity of Informal Work, Absence of Social Security, and Ageism: The Persistence of Social Inequalities and Challenges for Older Adults’ Labor Force Participation in India. In Handbook of Aging, Health and Public Policy (pp. 1–29). Springer Nature Singapore. https://doi.org/10.1007/978-981-16-1914-4_173-1

Uwajumogu, N. R., Nwokoye, E. S., Ojike, R. O., Okere, K. I., Ugwu, J. N., & Ogbuagu, A. R. (2022). Globalization and the proportion of women in vulnerable employment in sub‐Saharan Africa: The role of economic, social, and political conditions. African Development Review, 34(3), 356–369. https://doi.org/10.1111/1467-8268.12663

Venkatesan, M. (2021). Gender Roles, Cultural Norms, and Role of Income in Perceived Value: Women and Unpaid Work (pp. 482–489). https://doi.org/10.1007/978-3-319-95867-5_60

Wachter, T. von. (2020). The Persistent Effects of Initial Labor Market Conditions for Young Adults and Their Sources. Journal of Economic Perspectives, 34(4), 168–194. https://doi.org/10.1257/jep.34.4.168

Wang, J. (2023). Educational Strategies and Policies for Alleviating Relative Poverty (pp. 319–338). https://doi.org/10.1007/978-981-19-6355-1_17

Downloads

Published

2026-05-20

How to Cite

Setyanti, A. M., & Harsa, M. F. (2026). Do Gender Disparities in Working Poverty Persist? Evidence From Indonesia’s Labor Market. WELFARE: Jurnal Ilmu Ekonomi , 7(1), 104–120. https://doi.org/10.37058/wlfr.v7i1.362

Issue

Section

Articles

Categories