ABSTRACT
This paper analyses the informality of work in the formal sector in the era of globalisation. The concept of informal worker in this research is different from a number of previous studies using a sectoral-based economy definition. Informal workers or workers who experience informality of work in the formal sector are defined as workers with employee status, have working hours below 35 hours a week, are paid less than the minimum provincial wages, do not have employment contracts/have employment contracts but without a clear time duration, and do not have social security. By using Indonesian Family Life Survey (IFLS) 2014 data and binary logistic regression analysis, this study aims to examine the influence of ethnic identity and socio-demographic factors (such as gender, education level, marital status, age group, economic sector, rural-urban and Java–Outer regional) towards the tendency to experience informality of work in the Indonesian formal sector. The results indicate that ethnic identity and socio-demographic factors are simultaneously significant in determining the tendency of experiencing informality of work in the formal sector. The policy implication that can be suggested are in refocusing labour policy related to working time, minimum wages, employment contracts and social security, to workers with the following characteristics: non-local ethnic, young, less educated and married women, and engaged in the secondary and tertiary sectors located in the urban-Java region.
