Income-Generating Characteristics of Indonesian Households

Document Information

  • Country: Indonesia
  • # Pages: 27
  • Publication Year: 1984
  • Type of Media: Scientific Report

Abstract

The paper examines household members' labor inputs into different income-earning activities and the contributions of household members in different age-sex categories in terms of hours worked and household incomes. It analyses the determinants of household members' labor force participation and also the role of supplementary workers and of secondary jobs. The study uses data from the second (May) round of the National Socio-economic Survey of 1978, which collected information on more than 6,000 households members. The paper notes the great reliance of households on nonfarm sources of income, even in rural areas. When households are categorized by groups of sources of income, the group which is worst off is consists of nonfarm households in rural areas. From this evidence the paper concludes that farm household members are more likely to engage in off-farm activities when farm enterprise income is less adequate for their living requirements. In order to raise the income levels of households, government policy should be directed to various ways of raising farm productivity, and in addition, to encouraging nonfarm households enterprises in both urban and rural areas.