Institute for Economic and Social Research – Faculty of Economics and Business – Universitas Indonesia

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

June 9, 2015

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 factor–the impairment itself–or external factor–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 labor market, formal sector still has the so-called ’mental block’ in incorporating PWD as their workers.

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