The Impact of Labor Demand on Indonesian Female Labor Force Participation

Abstract

This study analyzed Indonesian female labor force participation (FLFP) from the labor demand side. The issue of Indonesian FLFP has received considerable attention in the literature, especially in the stagnation issues which happened more than two decades. Meanwhile, the Indonesia’s economy and employment condition have continued to grow during those periods. Related to this context, the study examines the development of Indonesian FLFP using Sakernas and Susenas data from 366 regencies/cities over the period 2006-2024. Then, the data are analyzed using a fixed-effects regression method with a balanced panel. The estimation result indicates that changes in labor demand potential have a significant and positive effect on the change of Indonesian FLFP.