cover image: Are There Jobs for Everyone ? An Analysis of the Relationship between the Employment of Older and Younger Persons in Indonesia (English)

Are There Jobs for Everyone ? An Analysis of the Relationship between the Employment of Older and Younger Persons in Indonesia (English)

12 Nov 2024

Against the backdrop of aging, Indonesia has started to address important policy challenges, including by gradually raising the retirement age. However, the increase in the retirement age and the prospect of longer employment of older persons raises concerns about its potential impact on the employment of younger persons. This paper is the first to analyze the relationship between the employment rate of older persons and the labor market outcomes of younger persons in Indonesia. Using data from the Indonesia Labour Force Survey (Sakernas) for 2016 to 2023, the analysis explores the relationship between the labor market outcomes - that is, the employment rates, unemployment rates, hours worked, and income - of younger persons and older persons. The findings show that overall, an increase in the employment rate of older persons is significantly associated with an increase in the employment rate of youth and prime-aged persons. The positive relationship is robust and is found across most of the specifications tested, that is, across genders, education levels, sectors, and within the formal sector. Encouragingly, there is no evidence of a significant negative relationship between the employment of older persons and younger persons. When there is a significant negative relationship between the employment of older persons and other employment outcomes of younger persons, the magnitude is small. These findings support the notion that raising the retirement age can address some of the challenges faced by an aging society. Finally, lifelong learning, upskilling, and reskilling are important to facilitate longer working lives by ensuring that older workers remain employable in a changing economy.
indonesia gender youth employment employment rate social protection job creation private sector development social development and protection labor markets east asia and pacific social protection and labor inclusive jobs social protection delivery systems human development and gender jobs diagnostics labor market equilibrium employment tools and methods aging and jobs social insurance and pensions

Authors

Abdur Rahman,Amanina Binti

Related Organizations

Organisation for Economic Co-operation and Development
Stanford University
DOI
https://dx.doi.org/10.1596/1813-9450-10972
Disclosure Date
2024/11/12
Disclosure Status
Disclosed
Doc Name
Are There Jobs for Everyone ? An Analysis of the Relationship between the Employment of Older and Younger Persons in Indonesia
Originating Unit
Off of Sr VP Dev Econ/Chief Econ (DECVP)
Pages
36
Product Line
Advisory Services & Analytics
Published in
United States of America
Rel Proj ID
ID-Indonesia Social Protection Reform Pasa -- P177341
Series Name
Policy Research working paper;
TF No/Name
TF0B6504-ID SP PASA - SI - Informal Coverage Expansion,TF0B6528-ID SP PASA - SI - Pension Systems Integration,TF0B6582-Strengthening Indonesia's Social Assistance System to be Inclusive, Int,TF0B6621-ID SP PASA - SI - Delivery Systems and UI,TF0B7849-Fostering a stronger and more inclusive Social Protection System in Ind,TF0C2289-ABIP - CSP SJSN Reform Support,TF0C2305-Labor Market Analytics to Support an Inclusive Green Transition in Ind-,TF0C2503-Social Protection Workshop Series,TF0C2557-Fostering a stronger and more inclusive Social Protection System in In-
Unit Owning
Social Protection & Labor EAP (HEASP)
Version Type
Final
Volume No
1

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