COVID-19-Associated Income Loss and Job Loss: Evidence from Indonesia

36 Pages Posted: 2 Aug 2022

See all articles by Rendra Achyunda Anugrah Putra

Rendra Achyunda Anugrah Putra

BPS-Statistics Indonesia

Kostiantyn Ovsiannikov

Kochi University of Technology

Koji Kotani

Kochi University of Technology

Abstract

COVID-19 pandemic has substantially altered socioeconomic conditions around the world. While numerous existing studies analyze the impact of the COVID-19 pandemic among developed states, little is known about its effects on people’s lives and social discrepancies in emerging economies. To this end, we empirically analyze the 2020 Indonesian Labor Force Survey data, hypothesizing that COVID-19 has given idiosyncratic risks and impacts on people by gender, age, education, occupation and geography. We find that income loss and job loss are prominent among males, younger and less educated people as well as among self-employed and part-time non-agricultural workers. These tendencies are not pronounced for people enjoying high income and mobility, but tend to be evident for urban residents and those having dependents. Notably, self-employed people have the highest risk of losing income, while part-time urban workers face the highest probability of losing their jobs. We conclude that in the absence of special governmental subsidies targeting these disadvantaged groups, social discrepancies related to income and employment status are expected to widen even further due to the pandemic.

Keywords: Labor force, Informal employment, Gender equality, COVID-19

Suggested Citation

Putra, Rendra Achyunda Anugrah and Ovsiannikov, Kostiantyn and Kotani, Koji, COVID-19-Associated Income Loss and Job Loss: Evidence from Indonesia. Available at SSRN: https://ssrn.com/abstract=4175844 or http://dx.doi.org/10.2139/ssrn.4175844

Rendra Achyunda Anugrah Putra

BPS-Statistics Indonesia ( email )

Kostiantyn Ovsiannikov

Kochi University of Technology

Koji Kotani (Contact Author)

Kochi University of Technology ( email )

Tosayamada, Kami-city
Kochi, 782-8502
Japan

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