Institute for Research on Economics and Society – Faculty of Economics and Business – University of Indonesia

People with Disabilities (PWD) and the Labor Force in Indonesia: A Preliminary Study

(This guide is only available in English.)

Alin Halimatussadiah, Maria Agriva and Chaikal Nuryakin

Abstract:

This study elaborates labor force characteristics of persons with disabilities (PWD) in Indonesia. Using Census 2010 and Susenas 2012, the data shows lower unemployment rate of PWD compared with persons without disabilities (PWOD). This finding seems to contradict the international evidence. We argue that discouraged workers are behind the low unemployment rate of PWD. The discouragement of PWD to enter the labor market may arise because of internal factors–the impairment itself–or external factors–disabling institutions. Low number of schools for PWD and low number of infrastructure to access educational facilities hamper PWD in reaching out to higher education and other life skills and capabilities. In the labor market, the formal sector still has the so-called 'mental block' in incorporating PWD as their workers.

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