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The purpose of this paper is twofold: first, to examine which factors are important in determining the post-migration education among rural-urban migrants in Indonesia. Second, to investigate whether investing in post-migration education in the cities improves the labour market performances of rural-urban migrants. The labour market performances are measured by the occupational (work) statuses and earnings (wages) at destination.

The determinants of post-migration education are estimated using a binary probit and ordinary least square, while a multinomial logit model and a two-step procedure of Lee’s selection-biased correction based on the multinomial logit are used to examine the effects of post-migration education on the labour market performances of migrants measured by occupational status and by wages. The main source of the data used in this study is the Rural-Urban Migration in China and Indonesia (RUMiCI) 2009-2011 survey conducted in the four largest recent migrant destination cities in Indonesia including Tangerang, Medan, Samarinda, and Makassar.

Post-migration education contributes significantly to the labour market performance in terms of work status and wages, compared to pre-migration education. In terms of work status, migrants with more post-migration education are more likely to be employed in the formal sector compared to migrants with less or no post-migration education. Relating to earnings, migrants with more post-migration education also tend to be paid more than those migrants with less or no post-migration education.

The role of post-migration education in the case of rural-urban migration particularly in developing countries is a relatively neglected area of research. One possible reason is because of the lack of data for rural-urban migration particularly in the case of developing countries. This study is taking advantage by using a new data set from RUMiCI focusing specifically on the rural-urban migrants in the four largest recent migrant destination cities in Indonesia including Tangerang, Medan, Samarinda, and Makassar.

The purpose of this paper is to examine the effect of a change in minimum wage on hours worked of paid employment in Indonesia. This study used the Indonesian Labor Force Survey (Sakernas) data from 1996 to 2003.

This study employs Bourguignon-Fournier-Gurgand two-step procedure of sample selection corrections based on a multinomial logit model for a potential selection bias from a non-random sample. This study extends the specification by examining the effects of minimum wage on hours worked of paid employment separately across individuals in different groups of gender (male-female workers) and residences (urban-rural areas).

This study generally found that an increase in the minimum wage increases hours worked of the existing paid employees. The effects of the minimum wage on hours worked are stronger for female workers than male workers particularly in urban areas due to that female workers, particularly in urban areas, are mostly employed in industries which contain more low-wage workers. Comparing residences, the minimum wage coefficient in rural areas is slightly higher because of the structural transformation in Indonesia marked by a shift in employment from the agriculture sector to the other sectors that require more working hours.

The empirical studies of the effect of minimum wage on hours worked in developing countries are very limited. This study contributes to the literature by employing the sample selection corrections based on a multinomial logit for a potential selection bias from a non-random sample This study also extends the hours worked specification by analyzing the effects of minimum wage on hours worked separately across individuals in different groups of workers, in terms of gender (male-female workers) and their residences (urban-rural areas).

The purpose of this paper is to examine the effects of minimum wage on youth employment across employment statuses in Indonesia. This study uses the National Labour Force Survey (Sakernas) from 2010 to 2012.

This study uses a multinomial logit model to see the youth distribution across different employment status changes as a result of an increase in the minimum wage. Five categories of youth employment statuses are examined including self-employed; unpaid family workers; paid employees in the covered sector; paid employees in the uncovered sectors; and unemployed. The model is examined separately for urban and rural areas, as well as for the male and female youth labour market.

The results generally suggest that an increase in minimum wage decrease the probability of youth being employed in the covered sector, i.e. paid employment in the covered sector and increase the probability of youth being employed in the uncovered sectors, including self-employed, unpaid family workers, and paid employment in the uncovered sectors. This study indicates a displacement effect for youths from the covered sector into the uncovered sector as suggested by the two-sector model. The specific results are different across urban and rural labour markets, as well as across males and females.

Compared to the developed country studies, the studies on the effects of minimum wage on youth employment in developing countries is relatively limited. The sample from Indonesian labour market with a large informal sector has never been used for these purposes. This study also contributes to the literature by using the particular definition of the covered-uncovered sector to the Indonesian labour market based on the employment status and individual wage data.