Women’s tendency in work involvement: a study of female labor force in Indonesia

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Universitas Brawijaya

S.E. Yuniashri

R.P. Handrito

Abstract

Culture is perceived as the most prominent factor which causes inequality in work involvement, especially in the context of gender. In many cultures, “glass ceiling” of gender bias often makes women less productive than their male counterparts because of their domestic duties. As a matter of fact, Indonesian women have proven their potentials and abilities in boosting the national economy. This study focuses on the effect of domestic duties, wages, and education on women's participation in the workforce. Using logistic regression and SUSENAS 2018 dataset, this research finds that women with higher education and greater number of children do not get involved in the workforce. This situation is inextricably associated with the predominant patriarchal culture in their domestic lives, in which the husbands assume absolute control, and women's roles are usually limited to domestic sphere. As is the case of the other workers, women are more engaged in their work when they get higher wages. Women who live in urban areas tend to have opportunities to be economically productive.

Keywords: female lab our, labor force, Indonesian women labor participation

Анотація

Схильність жінок до участі в роботі: дослідження жіночої робочої сили в Індонезії

Культура сприймається як найважливіший фактор, який спричиняє нерівність у трудовій діяльності, особливо в контексті статі. У багатьох культурах «скляна стеля» гендерних упереджень часто робить жінок менш продуктивними, ніж їхні колеги-чоловіки, через виконання домашніх обов'язків. Власне кажучи, індонезійські жінки довели свій потенціал і здібності у піднесенні національної економіки. Це дослідження зосереджено на впливі домашніх обов'язків, заробітної плати та освіти на участь жінок у робочій силі. Використовуючи логістичну регресію та набір даних SUSENAS 2018, це дослідження виявило, що жінки з вищою освітою та більшою кількістю дітей не беруть участь у робочій силі. Ця ситуація нерозривно пов'язана з панівною патріархальною культурою в їх домашньому житті, в якій чоловіки беруть на себе абсолютний контроль, а ролі жінок зазвичай обмежуються домашньою сферою. Як і у випадку з іншими працівниками, жінки більш залучені до своєї роботи, коли отримують вищу зарплату. Жінки, які живуть у містах, як правило, мають можливості бути економічно продуктивними.

Ключові слова: наша жіноча лабораторія, робоча сила, трудова участь індонезійських жінок

Introduction

Inequality has been a global problem plaguing many nations (Ville et al., 2023). Sustainable Development Goals (SDGs) prioritises eradication of inequality considering that it constitutes the prime culprit of poverty in addition to numerous environmental and societal problems (Baublyte et al., 2019). Furthermore, equality has always been an issue that affects wages, career, and work (Bai et al., 2023; Johansson et al., 2019; Ismail et al., 2017). Gender inequality, in particular, can occur in economic activities and creates discrepancies that affect both women and men (Akhtar et al., 2023). Gender inequality prevents women from participating in economic engagements, and this in turn will hamper the economic growth and undermine national resilience (Bastian et al., 2019). Previous research findings have shown that reducing problems related to gender inequality can bring positive impacts on economic growth (Braunstein et al., 2020; Minasyan et al., 2019; Cuberes & Teignier, 2014).

Within their economic context, work involvement and career achievement are deemed important since they give people the opportunity to enhance their life quality. However, inequality is still haunting working environment, especially when it comes to gender. Due to “glass ceiling” gender bias, women are frequently placed in a position lower than men. Their limited opportunities to pursue a better life has been a classic issue in the recent decades. Unfortunately, this condition is aggravated when they are married and have children. This issue arises especially in developing countries, where awareness of gender equality is low and where the authorities fail to prioritize this issue in their policies. To be specific, married female labor force is an important issue in economic development because the prevailing social and cultural norms put a lot of limitations on married women in terms of employment (Lari et al., 2022). Female labor force participation is usually restricted by husbands' decisions (Korotayev et al., 2015). Within the household, men reserve the prerogative to decide whether or not women can work (Majbouri, 2020).

Clear understanding of this phenomenon is essential so that policies regarding this issue can be formulated and communicated to the general stakeholders. Moreover, abolishing gender equality will provide women with social and personal benefits of achieving economic goals like better access to markets and resources, decent work and welfare, and increased participation in economic decision-making process. Furthermore, empowering women by reducing gender inequality will improve the quality of children's health, their upbringing and education, as well as their chances of becoming quality human resources (Alloatti, 2019). Different contexts and backgrounds on the national level necessitate specific research on the national scale. In particular, ameliorating the problems of gender inequality starts with improving human resources, which can take various forms or methods such increasing working women's skills and productivity, and reducing child mortality rate and preventing early pregnancy (Braunstein et al., 2020).

This study aims to explore the relationship between women's marital status and their decision to work by reviewing variables such as level of education, regional minimum wage, number of children, and area of residence in Indonesia. Indonesia was selected as the research locale because in this country female labor force makes significant contribution to the national economy. According to the Indonesian Ministry of Finance, the country's economic success is attested by 97% of women's involvement in economic activities. The large number of women in Indonesia compared to its neighboring countries can show the potential for superior economic growth through the proper use of human resources. In addition, the role of culture was included as a new determinant for understanding and addressing to the issue of inequality in developing countries and big economies.

Literature review. Inequality is defined as one form of injustice. UNDP in 2013 stated that inequality is broad in its scope; it can occur in various world populations, social strata, and afflict people living below the poverty line. Inequality is often associated with social and economic segregation. This barrier can have an impact on social classes through income gap; the situation gives privileges to richer people, and marginalize the poor (Adeosun & Owolabi, 2021). Gender inequality occurs more frequently in developing countries than in developed countries (Iqbal et al., 2022). One of the causes is the mindset of people living in developing countries. They confine themselves to traditional values, and this creates a barrier preventing them from advancing. These people will be left behind unless they keep abreast of the dynamics of an increasingly modern world. Another recurring problem in developing countries is religious tension, which creates political instability, division, and eventually, gender inequality (Ahmed & Brasted, 2021). Gender inequality in economic sector is quite detrimental because it limits women's opportunity for self-expression (Bastian et al., 2019). The perpetual inequality and gender stereotypes will create a barrier in the labor market through inefficiencies (Klemparskyi et al., 2022). When it comes to corporate territory, women's role on company's boards is minimal. Corporate boards of director are usually dominated by men. According to ILO's report, over 76% companies have a male chairman on the board. Companies with women presiding as CEO's tend to be smaller in size compared to those led by men. Of course, these companies are often less profitable because of their lower rate of growth. Studies from the OECD state that many women-led companies are engaged in wholesale and retail trade.

Education

Women and men have different ideas about their involvement in education (Awaworyi Churchill et al., 2019). Women tend to have lower education because marriage will limit their activities within the boundary of domestic affairs and rearing children, which is a stark contrast to men who are encouraged to enjoy higher education (Assaad et al., 2017). Statistics Indonesia states that women's involvement in education in urban and rural areas from 2016 to 2020 has always been lower than that of men. Especially at the senior high school level and above in rural areas, annual statistics shows that the percentage of women's involvement never exceeds the 30-percent level. Conversely, men's involvement rate in education continues to increase. High school education level and above in urban areas is always dominated by men, with the percentage that exceeds 50%. Women mostly have a lower level of education than men, showing the influence of culture on education. In essence, education equality, shown by the involvement of education, contributes to economic growth (Altuzarra, 2021).

In fact, women's involvement in higher education will potentially change their mindset as they become more open-minded and can get decent jobs in various economic activities (Abraham et al., 2017; Rendall, 2013). There are similarities between gender inequality-economic growth relationship and gender inequality-education relationship (Altuzarra, 2021). Women with higher levels of education tend to be more involved in the labor market than those with lower levels of education (Gavriluta et al., 2022). Women with higher education tend to have better skills and more job opportunities matching their skills (Assaad et al., 2020; Podder, 2018). Husbands' level of education increase women's involvement in work. Thanks to higher education, men can accept women's involvement in the labor market (Dawood et al., 2019). Additionally, men who can access higher education - whether they are married or not - will be more aware of the encroaching patriarchal power and try to fight it (Ennaji, 2016).

Regional minimum wage

Regional minimum wage is basically a policy instrument to ensure decent wage for workers. Regional minimum wage is calculated based on various aspects such as inflation, price of goods, and productivity. Although debates over regional minimum wage setting and its outcomes are frequent and politically entrenched (Ford & Gillan, 2017), regional minimum wages should be the price floor to protect vulnerable workers. However, in practice, the regional minimum wage is the benchmark figure for hiring workers. Hence, workers continue to earn less than regional minimum wage. Another lingering problem in Indonesia is wage inequality. Gender wage inequality can occur in both low-income and high-income occupations (Rudakov et al., 2022; Shoham & Lee, 2018). In spite of the explanations made to account for wage differentials, one cannot deny the fact that men earn more than women do. Men tend to get prioritized in work recruitments and continue to get more opportunities. Women tend to be neglected because they need to spend a lot of time and energy on household chores. As a consequence, the only jobs left for them are part-time jobs, jobs with few demands, and little pay. During recruitment process, women are not prioritized while male worker enjoy longer work hours (Medina-Hernandez et al., 2021), and earn higher wages in the labour market (Akhtar et al., 2023; Belasen & Angiello, 2018; Larraz et al., 2019; Jara Diaz & Candia Riquelme, 2017). An increase in wage supply will increase women's interest in engaging in work (De Hoyos, 2011), although this principle applies also to men.

Number of children

Economic growth as a condition for national development requires both men and women to engage in work. The involvement of a large number of women in productive work is a telltale mark of the most significant social transformation (Moon & Hasan, 2022). Traditionally, women have responsibilities for childcare and domestic work. Along with the growing number of women who get higher education, anxiety rises among mothers who also wish to be economically productive. This is a common sight at present (Korabik & Warner, 2013; Poduval & Poduval, 2009; Dorio et al., 2008; De Cieri et al., 2005). Previous studies reveal that many married women aspire to be economically productive, but they tend to get shorter work hours (Pratomo, 2014).

However, some women show the proclivity to be family-oriented; they believe they have central position in domestic affairs. They steadfastly adhere to conservative values about their domestic roles. They tend to spend time with their children and work close to home. Gender segregation only becomes a problem when they enter the labor market where they expect to get part-time and flexible jobs. Women who do not have children tend to use their time to improve their education and engage in economic activities (Bearak et al., 2021). In addition, women who already have children tend to earn lower wages than those who do not (England et al., 2016; Florian, 2018). Families with more dependents need higher income because spending on education and children's health will automatically increase. It is this form of gender inequality that ultimately deters women from joining female workforce and increases their fertility (Kizilova & Mosakova, 2019). Ultimately, this phenomenon will create a vicious circle in women's labor market. The number of dependencies in the family should be a good driver for women's labor force participation (Marois et al., 2022).

Area of residence

This study uses quantitative approach and logistic regression analysis. Logistic regression is one way to analyse the dichotomous dependent variable's characteristics (namely Y = 0 and Y = 1). The logistic regression analysis method regresses the Y variable with X or (independent variable). In this study, the independent variables are as follows:

Table 1

Variable Explanation

This study uses data acquired from the 2018 SUSENAS (National Socioeconomic Survey) and from 2018 Statistics Indonesia. SUSENAS dataset is issued triennially, while the Statistics Indonesia dataset is issued annually. The survey was designed to collect population social data with the coverage of 83%. The data were collected through direct visits and interviews conducted by Statistics Indonesia enumerators. In general, SUSENAS dataset was collected with the aim of designing better plans necessary for making the right policies based on the data at hand. All data variables are collected from SUSENAS. However, due to limited data, the data for the regional minimum wages were collected from Statistics Indonesia.

Based on the explanation provided in the introduction section and the support of the theories and past studies, the hypotheses of this research are as follows.

Hi... women with higher level of education are more involved in work

H2... women with higher wage are more involved in work.

H3... women with larger number of children are more motivated to be involved in work.

H4... women living in urban areas are more involved in work.

Results and discussion

This study examines married Javanese women of productive age (15-64 years). The total number of respondents is 94,561.

The Table 1 presents the results of SUSENAS data processing, and the resulting values are explained in the table below.

Table 2

Descriptive statistics

Source: self-processed data

Based on the results of the data processing in STATA, the general description of the independent variable data distribution center shows that the average level of education taken by the respondents is 9 years, or up to Junior High School. In this case, this level of education is considered to be low. In the regional minimum wage variable, the average value is IDR 2,113,894. Statistics Indonesia classifies this average as moderate. The average number of children owned by women in this study is 4, and in average, the women live in urban areas.

The results of the statistical tests with logistic regression models are as follows.

Table 3

Variables in Equations

Source: self-processed data

Based on the results of data processing, the logistic regression formula is as follows.

LN((P(Y=1))/(1-P(Y=1))) = - 0.5836 - 0.0641 (Education Level) + 0.3462

(Regional Minimum Wage) - 0,0449 (Number of Children) - 0,1128 (Area

of Residence) (1)

In terms educational level, the estimation show a significant negative coefficient, which means that the higher education taken by the married female labour force, the lower their chance of being engaged in work. The odd ratio shows that every increase in the length of education taken by women reduces their opportunity to work by 0.9378. The regional minimum wage variable has significant positive results, which means that the larger the regional minimum wage, the bigger their chances for employment. The odd ratio indicates that each increase in the regional minimum wage would increase women's involvement in employment by 1.4137. An interesting result appears in the variable number of children. The result of the data processing is a significant negative coefficient. This means that the more children they have, the higher is chances for the women to decide not to work. Every increase in the number of children will reduce their likeliness to work by 0.9560, as indicated by the odd ratio value. The result of the data processing on the variable area of residence is significant and positive, indicating that women residing in urban areas are more involved in work. The odd ratio value in the variable of area of residence means that married women who live in urban areas have the opportunity to decide to work by 1.1194.

Table 4

Classification Estimation

Source: own calculation

In order to obtain a statistical summary of the estimated results from the logistic regression model, classification estimates are carried out. The above table presents the results of the classification. The number of observations that have been classified correctly according to the actual classification from the data is 62.24%. This value shows the extent to which the model succeeded in predicting the correct classification and gives an idea of the accuracy of the model. The result of the sensitivity or true positive rate is 3.69%, and the specificity value is 97.79%.

patriarchal gender labor іndonesian woman

Data analysis, backed up by actual situation in Indonesia shows that inequality in work and a patriarchal culture do exist, and this raises criticism. The relevance of discussing inequality for women in the economy is that women who are given space and freedom can increase their lab our force participation. Female labor force participation can increase a country's productivity, which will positively impact its progress through contributions to production, economic business, and employment, especially in this era of demographic bonuses. Such participation can provide a multiplier effect on the consumption curve thanks to women's ability to purchase goods and services which in turn will set the economic wheels in motion. Another positive impact form women empowerment is the improved quality in domestic life. Women with open mind and wider horizons have better awareness of health and nutrition, and they will raise competitive future generations.

The community can preserve Javanese culture and local values, pass on the virtues to the next generation as to maintain national and cultural identity. Nevertheless, Javanese must advance and modernize their way of thinking, especially when it is about the role and position of women. In the modern era, women are expected to be involved in self-development and actualization in the public sphere. Providing space and freedom for them has long-lasting implications, one of which is better human resources.

However, this study only focuses on women and their immediate surroundings. Future prospective researchers may add variables that are closely related to women, such as husband's education level. New research variables pertaining to husbands will certainly bring more decisive results, considering women's lives are frequently dictated by the opinion of the household heads. The higher the husband's education level, the better the decisions are made in the family. Two assumptions can be made from the addition of husband's education as a variable. First, as the husband has a higher level of education, he will get more decent wage that enables him to provide for his family, and the wife does not need to work. Second, higher education can modernize his way of thinking. He, in turn, will give his wife the freedom to engage in work other economic activities.

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