Main Article Content


This study aims to analyze the impact of parents’ employment status mobility on the children’s employment status mobility. In doing so, we applied a two-stage multinomial logistic regression model. In this research, employment status mobility refers to a mobility status from informal to formal jobs and vice versa. Using data from the Indonesian Family Life Survey (IFLS) for the period 2007 and 2014, the profile of the Indonesian workforce was dominated by stayers. The estimation results of multinomial logistic regression indicate that only fathers’ employment status mobility has a significant effect on the children’s employment status mobility, where fathers who are stayers and experiencing upward mobility will provide greater opportunities for their children to be stayers and fewer opportunities to experience downward mobility. Moreover, the employment status mobility of mothers does not have a significant impact on their children’s employment mobility. Our study points out the pivotal role of fathers in influencing employment formalization in Indonesia. Our findings could be valuable inputs for policy-making regarding employment formalization in Indonesia.

Article Details

How to Cite
Ruslan, K., & Sukma, W. L. (2023). Employment Formalization in Indonesia: Role of Parents’ Employment Mobility Toward Children’s Employment Mobility. Jurnal Ekonomi Dan Statistik Indonesia, 3(1), 53-69.


ADB. (2018). Indonesia: Enhancing Productivity through Quality Jobs. (E. Ginting, C. Manning, & K. Taniguchi, Eds.). Metro Manila.
Aisyah, S., & Parker, L. (2014). Problematic Conjugations : Women’s Agency , Marriage and Domestic Violence in Indonesia. Asian Studies Review, 38(2), 205–223.
Aldrich, H. E., & Kim, P. H. (2015). A Life Course Perspective on Occupational Inheritance: Self-employed Parents and their Children. The Sociology of Entrepreneurship, 25, 33–82. Retrieved from
Allen, E. R. (2016). Analysis of Trends and Challenges in the Indonesian Labor Market. Asian Development Bank (ADB) Paper on Indonesia, (16), 1–38.
Angel-urdinola, D. F., & Tanabe, K. (2012). Micro-Determinants of Informal Employment in The Middle East and North Africa Region Micro ‐ Determinants of Informal Employment in The Middle East and North Africa Region (SP Discussion Paper).
Arvinta, N. M. (2018). Following in My Parent’s Footsteps: Analyzing Intergeneration Occupational Persistence in Agriculture. Universitas Indonesia.
Bappenas. (2009). Kajian Evaluasi Pembangunan Sektoral: Peran Sektor Informal sebagai Katup Pengaman Masalah Ketenagakerjaan. Jakarta.
Bartel, A. P., & Borjas, G. J. (1981). Wage Growth and Job Turnover : An Empirical Analysis. In S. Rosen (Ed.), Studies in Labor Markets Volume (Vol. I, pp. 65–90). University of Chicago Press.
Becker, G. S. (1991). A Treatise on the Family (Enlarged). Cambridge: Harvard University Press.
Berg, G. J. Van Der. (1992). A Structural Dynamic Analysis of Job Turnover and the Costs Associated with Moving to Another Job. The Economic Journal, 102(414), 1116–1133. Retrieved from
Borjas, G. J. (2016). Labor Mobility. In Labor Economics (pp. 312–361). McGraw-Hill Education.
BPS. (2009). Analisis Kemiskinan, Ketenagakerjaan, dan Distribusi Pendapatan. Jakarta.
BPS. (2013). Indikator Pasar Tenaga Kerja Indonesia Agustus 2013. Jakarta.
BPS. (2018). Indikator Pasar Tenaga Kerja Indonesia Agustus 2018. Jakarta.
Brooks, T., Lee, S., Berry, H., & Toney, M. B. (2010). The Effects of Occupational Aspirations and Other Factors on the Out-Migration of Rural Youth. Journal of Rural and Community Development, 5(3), 19–36.

Cameron, A. C., & Trivedi, P. K. (2005). Microeconometrics: Methods and Applications. (S. Parris, Ed.) (First Edit). New York: Cambridge University Press.
Carneiro, F. G., & Henley, A. (2001). Modelling Formal vs. Informal Employment and Earnings: Micro-econometric Evidence for Brazil (U of Wales at Aberystwyth Management & Business Working Paper). Retrieved from or
Collins. (2015). Mobility. Retrieved June 30, 2019, from
Colombier, N., & Masclet, D. (2007). Intergenerational correlation in self employment : some further evidence from French ECHP data. Small Bus Econ.
Danish Technological Institute. (2008). Job Mobility in the European Union : Optimising its Social and Economic Benefits. Retrieved from
Davis-kean, P. E. (2005). The Influence of Parent Education and Family Income on Child Achievement : The Indirect Role of Parental Expectations and the Home Environment. Journal of Family Psychology, 19(2), 294–304.
DeJong, P. Y., Brawer, M. J., & Robin, S. S. (1971). Patterns of Female Intergenerational Occupational Mobility : A Comparison with Male Patterns of Intergenerational Occupational Mobility. American Sociological Review, 36(6), 1033–1042. Retrieved from .
Dubow, E. F., Boxer, P., & Huesmann, L. R. (2009). Long-term Effects of Parents’ Education on Children’s Educational and Occupational Success: Mediation by Family Interactions, Child Aggression, and Teenage Aspirations. Merril-Palmer Quarterly, 55(3), 224–249.
Dunn, T., & Holtz-eakin, D. (2000). Financial Capital, Human Capital, and the Transition to Self-Employment: Evidence from Intergenerational Links. Journal of Labor Economics, 18(2), 282–305.
Egerton, M. (1997). Occupational Inheritance: The Role of CUltural Capital and Gender. Work, Employment, & SOciety, 11(2), 263–282.
Ehrenberg, R. G., & Smith, R. S. (2012). Modern Labor Economics: Theory and Public Policy. (D. Battista, Ed.) (11th editi). Boston: Pearson Education, Inc.
El-mallakh, N., & Wahba, J. (2016). Upward or Downward : Occupational Mobility and Return Migration (Economic Research Forum).
Emran, M. S., & Shilpi, F. (2011). Intergenerational Occupational Mobility in Rural Economy: Evidence from Nepal and Vietnam. The Journal of Human Resources, 46(2), 427–458.
Green, F. (2010). Well-being, job satisfaction and labour mobility. Labour Economics, 17(6), 897–903.
Gubler, M., Biemann, T., & Herzog, S. (2017). An apple doesn’t fall far from the tree—Or does it? Occupational inheritance and teachers’ career patterns. Journal of Vocational Behavior.
Heckman, J. J. (1979). Sample Selection Bias as a Specification Error. Econometrica, 47(1), 153–161.
Heinrich, C. J. (2014). Parents ’ Employment and Children ’ s Wellbeing. The Future of Children, 24(1), 121–146.
Herwantoko, O., Handayani, D., & Indrayanti, R. (2018). Formal sector is not so formal anymore: Informality of work in the formal sector among ethnics. In L. Gani, B. Y. Gitaharie, Z. A. Husodo, & A. Kuncoro (Eds.), Competition and Cooperation in Economics and Business (pp. 249–256). London: Taylor & Francis Group.
Hout, M. (2018). Americans ’ occupational status reflects the status of both of their parents. PNAS, 115(38), 9527–9532.
Hundley, G. (2006). Family Background and the Propensity for Self-Employment. Industrial Relations, 45(3), 377–392. Retrieved from
ILO. (2015). Recommendation 204: Concerning the Transition from the Informal to the Formal Economy. Geneva.
Inkson, K. (2004). Images of career : Nine key metaphors. Journal of Vocational Behavior, 65, 96–111.
Ji, T. (2018). Aggregate Implications of Occupational Inheritance in China and India. The B.E. Journal OfMacroeconomics, 19(1), 1–43.
Kronenberg, K., & Carree, M. (2012). On the Move: Determinants of Job and Residential Mobility in Different Sectors. Urban Studies, 49(16), 3679–3698.
Laband, D. N., & Lentz, B. F. (1983). Like Father , Like Son : Toward an Economic of Occupational Theory Following, 50(2), 474–493. Retrieved from
Lambert, S., Ravallion, M., & Walle, D. Van De. (2014). Intergenerational Mobility and Interpersonal Inequality in an African Economy. Journal of Development Economics.
Lee, L. (1982). Some Approaches to of Selectivity Bias. The Review of Economic Studies, 49(3), 355–372. Retrieved from
Lehmann, W. (2007). Social Context : “ It ’ s Just What My Family Does ”. In Choosing to Labour? : School-Work Transitions and Social Class. MQUP.
Lehmer, F., & Ludsteck, J. (2011). The returns to job mobility and inter-regional migration: Evidence from Germany. Papers in Regional Science, 90(3), 549–571.
Li, J. (2013). Job mobility, wage dispersion, and technological change: An asymmetric information perspective. European Economic Review, 60, 105–126.

Looze, J. (2017). Why Do(n’t) they leave?: Motherhood and women’s job mobility. Social Science Research, 1–13.
Nazara, S. (2010). Ekonomi Informal di Indonesia : Ukuran, Komposisi, dan Evolusi. Jakarta.
Ng, T. W. H., Sorensen, K. L., Eby, L. T., & Feldman, D. C. (2007). Determinants of job mobility: A theoretical integration and extension. Journal of Occupational and Organizational Psychology, 80(3), 363–386.
Patton, W., & Mcmahon, M. (2006). The Systems Theory Framework of Career Development and Counseling : Connecting Theory and Practice. International Journal for the Advancement of Counselling, 28(2), 153–166.
Porta, R. La, & Shleifer, A. (2014). Informality and Development. Journal of Economic Perspectives, 28(3), 109–126.
Sørensen, J. B. (2007). Closure and Exposure : Mechanisms in the Intergenerational Transmission of Self-employment. In M. Ruef & M. Lounsbury (Eds.), The Sociology of Entrepreneurship (Research in the Sociology of Organizations, Volume 25) (pp. 83–124). Emerald Group Publishing Limited.
Sousa-poza, A., & Henneberger, F. (2004). Analyzing Job Mobility with Job Turnover Intentions : An International Comparative Study. Journal of Economic Issues, 38(1), 113–137.
Tannuri-pianto, M., & Pianto, D. M. (2002). Informal Employment in Brazil – A Choice at the Top and Segmentation at the Bottom : A Quantile Regression Approach. Anais Do XXIV Encontro Brasileiro de Econometria, 2. Retrieved from
Taufiq, N. (2018). Pendidikan, Informal Turnover, dan Dinamika Kemiskinan di Indonesia. Universitas Indonesia.