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Determinants of Labour Force Participation by Married Women: The Case of Jakarta


Diah Widarti a a Department of Manpower, Jakarta

To cite this Article Widarti, Diah(1998) 'Determinants of Labour Force Participation by Married Women: The Case of

Jakarta', Bulletin of Indonesian Economic Studies, 34: 2, 93 120 To link to this Article: DOI: 10.1080/00074919812331337350 URL: http://dx.doi.org/10.1080/00074919812331337350

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Bulletin ofIndonesian Emnomic Stud&

Vol34 No 2 ,Aumst lpgS, PV. 9S1120

DETERMINANTS OF LABOUR FORCE PARTICIPATION BY MARRIED WOMEN THE CASE O F JAKARTA


Diah Widarti'
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Dcpnrtnient of Manpower,lakarta

This study seeks t o identify the determinantsof femalelabourforce participation (FLFP), by assessing the influence o f a set of sociodemographic,cconomic and cultural factors on educational class differentialsi n the LFP of married w o m e n i n Jakarta A !-shaped f association between educationand FLFI' I$ prevalent i n pattern o many developing countries:less educated w-urnenofteni h u w LFP rate, close tu lhose uf well educated women,whereas rnndrrately educated womcn havr lower rates. The study concludes that n the education i s a strong determinant of women's participationi pattern of association between Jakartalabour force.The J-shaped educationand FLFP persisted a f t e r standxdisation by age,although it was less marked than the literatures u g g r , t s F e w variables were consistently significant for all edoi.itiana1 classes, with a Afferent m~x of varmbles influencing FLrP m cach group Childrcn below five living at home, however, had a sinnificantnezative association with FLFP in all educationalclasses.

INTRODUCTION
W o m e n have long participated in formal and informal employment. In Indonesia, as in m a n y other developing countries, they play an increasingly important role i n economic and social life (Benyamln 1996).

' T h i s paper is based largelynn the authur'sPhD dissertation, written a t Flmders University i n South Australia.Thr authur wishes t o express her gratitude t o USAID which funded the work, and i n particular t oD r Mary Norns o f USAID f o r her valuable comments and encouragement.

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Diah Widarti

Indonesian w o m e n enjoy higher labour force participation than their counterparts in many other Muslim countries,although the rates are s t i l l lower than those in some other parts of SoutheastAsia. While there have been a number o f studies of womens employment in developed countries,I i t t l c research has occurred in developing countries,including Indonesia,where continuing work on the extent and determinants of FLFP w i l l remain crucial. There are several convincing reasons to expect a positive association between the educationalachievement o f w o m e n and their labour force participation.Nevertheless,the relationshipbetween these two variables is not always a positive one. Studies show mixed results: research in Middle Eastern countries such as Egypt,Syria and Turkey, and in Latin American countries such as Colombia,Argentina,Chile and Venezuela,has demonstratcd a positive relationship between the two variables (Farooq 1972;Elizaga 1974;Youssef 1976;Peek 1978; I e c h t 1978). But countries such as India,Pakistan,S r i Lanka and Papua N e w Guinea have exhibited a ]-shaped curve of association between them (Sinha 1967;Standing and Sheehan 1978b;Sheehan 1978). This is also the case for Indonesia (Joncb1994). These mixed findings probably reflect the impact of interrelated socio-economicand demographic differences on womens participation in the labour market Thus, a number of patterns may arise in developing countries,and a J-pattern i s the most c o m m o n o f these. Findings based on the 1985 Intercensal Population Survey (Supas) data for Jakartaindicate that both the age standardised and the unstandardised education-5pecificLFP rates of Jakartas w o m e n were J-shaped, even if the data were disaggregated by marital status (table 1). The primary purpose of this paper is to examine the supply side determinantsof married womens LFP in Jakartaw i t h i n a multivariate framework, and to identify the extent t o which female educationhas an independent effect. The analysis confirms the existence of the ]-curve phenomenon foundin many other developing countries.A major goal of the study is to arrive at a satisfactory explanation of the causes of labour force participation differentials among married w o m e n of differenteducationalgroups in Jakarta. In order t o understand better the forcesthat give rise t o the J-curve phenomenon,the analysis seeks t o determine how the impact o f cultural,family and other socio-economic factorson womens labour forceparticipation varies according to level of education Jakarta w a s chosen as the study site for a number of reasons:as a capital city,the centre of government and the most modern city in the archipelago,it i s a meltingpotofpeople from various ethnic

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Labour Force Participationby Married Women:The Case ofJakarta

95

backgrounds;and it i s more exposed t o the world economy than are other urban centres i n Indonesia.

FRAMEWORK O F ANALYSIS
Several scholars have identifiedfactors that may influence womens entry into the labour market (Sobol 1963;Hoffman 1963;Cain 1966; Sweet 1973).Sohol (1963)classifiesthem into three groups.First are the ennblirig conditioiis,such as the number and age ofchildren.It is often suggested that the more childrtn a woman has,and the younger their age, the more likely it is that she w i l l not be in the labour market, owing to incompatibility between the maternal role and labour force

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TABLE 1 Fernale h l w u r Force Partrciptml Rates by Education and M a r i t a l Status for A l l W o m m Aged 10 Years and Ouer, Jakorto,1985

Education
Level

Single
*I

Married
. I

Divorcedl Widowed

Total

32.0 53.1 35.7 3 7 . 6 58.5 40.1


808

. .
24.6 3 0 . 5 19.4 21.4 18.1 18.1 14.0 14.1 38.5 25 1 217 21.7 8,505

No schooling Less than primary


school Priniaryschool Lower secondary school Upper secondary and above Total

53.1 17.6 23.4 12.9 42 8 23.4 3,589

52.7 28.8 28.5 14.3 26.2 39.7

15.4 14.0 11.4 13.2 3 3 . 4


16.6

14.7
14.0 11.5

42.7 47.6 31.8 31.5 25.8 44.5

1 2 . 9
46.1 11.9

4,108

Unstandardised Standardised according t o the age structureo f the respective group. Source:BPS, 1985 Supas data

Diah Widarti

participation.This may not apply,however,if there i s a substitute child carer.' A second group of factorsconsidered t o influencewomen's entry into the labour market are the ~facilitntiq coriditions', such as education or training, previous work exprrience, and local labour market conditions One of the facilitatingconditions that is likely t o impact most strongly on women's work is cducatioii.The relationship between education and economic activity has h e m given close attention by economists,w h o generally contend that there i s a positive association between these two factors (Mincer 1962; Sohol 1963; Rowen and Finegan 1966,Epstein 1970;Sweet 1973; Sorkin 1974; Psacharopoulus 1975, 1977; Michael 1985, Blau, Behrman, and Wolfe 1988; Psacharopoulusand Tzannatos 1989). The third group of factor5identified by Sohol are the 'precipitating conditions',including dissatisfactionwith the level ofhousehold income and personal dissatisfaction.W o m e n w h o are dissatisfied with their familyincome may decidc t o enter the labour market,hut the decision w i l l also be affectedby prevailing socio-culturalfactors in particular societies (Boserup 1970, 1975) The determinants of FLFP are often separated into 'supply' and 'demand factors.Because of data limitations,thc analysis in this study focuscs on supply side factors. The expected relationship of each variablc t o FLFP i s discussed in the following paragraphs. There are several ways in which one might examine how women's education affects LFP.A woman's educational level may influenceher involvementin economic activity through intermediatevariables such as age at first marriage (I1AFM)and futilit!/. Despite general findings confirming a usually strong negative relationshipbetween the presence o f young children and FLFP i n developed countries (Nye and Hoffman 1963), Lehrer and Nerlove (1986)argue that the results over several studies are somewhat inconsistent. In developing countries the findings are mixed (Jaffe and Amnii 1960;Gendell et ai. 1970;Goldstein 1972; Chaudhury 1978). It seems that the relationship between f e r t i l i t y and FLFP varies according to socio-economicand cultural settings and,

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o obtain ' I n developing countries such as Indonesia,many families are able t assistance i n taking care of children.rithcr from a paid domestic worker or from a member of thc extended family.Even io,some educated mothers who may be able t o afford child care prefertu care for their young children at home rather than go out to work (Standing1978,p. 142).

Labour Force Participation by M a r r i e d Women:The Case o fJakarta

9 7

importantly,according to the nature of job opportunities available t o women. A hypothesis of this study i s that among less educated women the relationshipbetween marital status and number o f young chldren i n the household on the one hand and FLFP on the other may be rather weak. The reason for this i s that many uneducated women are forced t o work in low status,less secure jobs and in informal sector activities that do not have rigid working hours. Mnteriinl role incompntibility is likely t o be relatively unimportant.Even if a w o m a n has to leave the children a t home,she can frequently make use of unpaid surrogatechild carers such a s neighboursor extended family members.Among moderately educated women,however,the association might be expected t o be much stronger. These w o m e n usually feel reluctant t o work in low status lobs. The income o f the husband is sufficient to fulfilbasic needs,but the family may not be able t o afford child care services (servants).This assumes that w o m e n are generally married t o men with somewhat higher educational levels than themselves.'Therefore moderately educated married w o m e n may be reluctant t o enter the labour market. Among highly educated women,on the other hand,the opportunity cost o f being economically inactive may be substantial: they are likely t o be dissatisfied if they do not employ the skills they have gained,and fearful of those skills being lost through lack of use.There i s less reason for educated women t o be obliged t o remain a t home with children,because they can generally affordt o hire servants. The inclusion of ethnic bnck,gruiind as a variable i n this study i s based on the argument that the involvement of w o m e n in the labour market i s influenced by social values derived from their cultural backgrounds (Youssef1976;Anker and Knowles 1978;Jones1 9 8 6 ,p.9 ) . It is argued,f o r example,that the low level of involvementin economic activity by indigenous Jakarta w o m e n is due i n part t o the more traditionally Islamic values among this group (Jones1977). The high female labour force participation levels in Central Java,on the other hand, are attributed to the norm of work as a w . a y of l i f e for the Javanese(Geertr 1962; Hull 197hb).Among highly educated women,it is likely that cultural restrictions on women's work are less pervasive and allow women from certain regons i n Indonesia with traditionally low FLFPs,such as South Sulawesi (home of the Bugis people), to be more active i n the labour market.The opportunity cost of being inactive foreducated women appears t o outweigh the influence of ethnic factors in governing economic activity.As almost half of Jakarta's population are migrants, it i s considered necessary in this study to include migration as a factor in female economic activity.

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Diah Widarti

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A further hypothesis is that family economic status, which may be reflected in husbands education, husbands occupation, family expenditure,or house ownership and condition,w i l l influence womens economic activity,and that w o m e n whose husbands earn high incomes are less likely to be active in the labour market (Mincer 1993,p.5 ) .This i s particularly so if a womans educational level i s low, making the opportunity cost o f economic inactivity relatively small,and if there are strong social and cultural pressures against w o m e n working outside the home.In this case the income effect of the husbands high economic status i s likely t o restrain a w o m a n from entering the labour market. For w o m e n with relatively high education,the opportunitycost o f economic inactivity w i l l be substantial,and they will tend to be i n the labour force despite the income effect deriving from high family income status. Labour market conditions are likely to influencewomens entry into the workforce. Such conditions can be reflected in the employment behaviour of households. The relationship between labour market conditions and femalelabour force participation can be summarised as the balance of discouraged and additional worker effects. Since unemployment and underemploymentrate5 are relevant to group rather than individual behaviour, w e use husbands employment and I,nd~,reniplo!,nie,itstntos ai a proxy for the impact of household labour market participation on FLFI. Households with husbands who are unemployed w i l l receive less family income,inducing the wives to seek work in order t o maintain household consumptionlevels. The study focuses on the extent and causesofLFP ofmarried women in Daerah Khusus Ibnkota (DKI) Jakartain 1985,and on the pattern of differentialsamong groups of w o m e n stratified by level o f completed schooling.
METHODOLOGY
In this study,a multivariate analysis i s conducted i n which FLFP i s treated as the dependent variable.The analysis investigatesthe effects of certain socio-culturaland economic factors on the LFP of married w o m e n in three educational groups. W e therefore conducted four separate sets of regressions. First, hypothesised relationships were tested for the aggregate data sample.Then the sampled w o m e n were segmented into three g o u p s according to their educational levels.Using the same variables as in the analysis of the aggregate data sample,w e then carried out separate regression analyses for each segmented data set.

Labour Force Participation by Mamed Women:The Case ofJakarta

99

The analysis i s based mainly on secondary data obtained from the


1985 Supas for Jakarta. There are weaknesses in using data such as the Supas, but at the time this study was undertaken there was no other

available source giving cross-sectional data on all the variables. Clearly,using cross-sectionaldata f o r this dependent variable would not allow one t o detect entries into and exits out of the labour force which might relate t o stages of the life cycle. Measurement of the economically active population in the 1985 Supas and other data sources i n Indonesia is influenced by the concept of the labour force used The 1985 Supas defined members ofthe Indonesian labour force as those over 10 years old who had worked at least one hour during the previous week. For the multivariate analysis o f a dichotomousdependent variable, w e apply the logit method in the analysis.The model assumes that a w o m a n may select one of two mutually exclusive alternatives: t o be involved i n the labour force or not t o be involved in the labour force. The probability of her choosing the firstor the second depends on both her individual and her family characteristics,which in this study are classified as (1) socio-demographic variables such as the woman's age, age a t first marriage, education, ethnicity, migration status, and the presence o f children; and (2) economic status variables including husbands education,husbands occupation,household expenditure,a housing index,and husbands employment status.The exclusion o f wage as an influential factor in this study i s due merely t o the unavailability of such a variable in the Supas data. Some explanatory variables used in the study, particularly demographic ones such as age,marital status,education,and duration o f migration, are readily taken from the information available in the 1985 Supas.Others have no direct measure, and for these proxies are used. Age at f i r s t marriage (AAFM)i s used for age of entry into sexual union, ethnicity i s proxied by place of birth, and family economic status i s proxied by husbands educationand occupation,family expenditure and a housing index. The use of family expenditure is due t o the unavailability of income data i n the Supas. For each variable a reference group is arbitrarily selected,usually representing the respondents whose relationshipt o LFP is not the focus

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s defined i n terms of a reference 21n each data source,labour force status i period and a minimum number of working hours, bath determined by the research body conductingthr survey.

1 W

Diah Widarti

of the study.The notations ofthe independent variables used in the study are as follows. Socio-Demographic Variables Age o fW i j c * AGEBBl referencegroup;d u m m y categories:1 if age ofwoman is 15-24; 0 otherwise; d u m m y categories: 1 if age of w o m a n i s 2539; 0 * AGEBBZ otherwise; f woman i s4 0and AGEBB3 d u m m y categories:1 if age group o above;0 otherwise.
Educntioii
*

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WEDUl

WEDU2 WEDU3

reference group; d u m m y categories:1 if womans education i5 none or some years at primary school level;0 otherwise; d u m m y categories:1 if woman has completed primary school or lower secondary school;0 otherwise; d u m m y categories:1 if w o m a n has completed upper secondary school or above; 0 otherwise.

Age at First Marriqc AFMl d u m m y categories: 1 if a womans age at first marriage i s younger than 19yearsold;0 othrewise; * AFM2 reference group;d u m m y categories:1 if a womans age at first marriage i s older than 19 years old; 0 otherwise.
Ethnicity ETNBl
*

ETNB2 ETNB3

ETNB4

d u m m y categories:1 if womans place of birth is Jakarta;0 otherwise; d u m m y categories: 1 if womans place o f birth i s West Java,0 otherwise; d u m m y categories: 1 if womans place of birth i s elsewhere i n Java; 0 otherwise; referencegroup, d u m m y categories:1 if womans place of birth is elsewhere in Indonesia;0 otherwise.

hbonr Force Partidoationby Married Women: The C a s eo fJakarta

1 0 1

D u r a t i o no fM i p n t Rcsidence
*

RESYDl
RESYDZ

RESYD3

d u m m y categories: 1 if w o m a n is a migrant and has been living in Jakartaless than 5 years;0 otherwise; d u m m y categories:1 if w o m a n is a migrant and has been living in Jakarta5 years o r more,but less than 15 years;0 otherwise; reference group;d u m m y categories:I if w o m a n has been living in Jakarta15 years or more;0 otherwise.

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Presence of Children at Home d u m m y categories:1 if there i s at least one child * KIDDO under 5 years old in the household;0 otherwise; d u m m y categories:1 if there are no children aged less KIDDl than 5 years,but at least one child aged 5-15 years; 0 otherwise; reference group; d u m m y categories:1 if there are no * KIDD2 children aged less than 15 years living at home (includingno children), but at least one child over 15 years;0 otherwise.

Economic Variables Husbands Educatioii HEDUl reference group; d u m m y categories: 1 if husbands education i s none or some years at primary school level;0otherwise; d u m m y categories: 1 if husband has completed * HEDU2 primary school or lower secondary school; 0 otherwise; d u m m y categories: 1 if husband has completed upper HEDU3 secondary school o r above;0 otherwise.

Husbands Occupation d u m m y categories:1 if husband i s employed as a * HOCCAl professional, administrator, manager or clerk; 0 otherwise; d u m m y categories:1 if husband i * HOCCAZ s employed as a sales or service worker;0 otherwise;

102
*

Diah W i d a r t i

HOCCA3

referencegroup; d u m m y categories:1 if husband i s employed as a production or related worker; 0 otherwise.

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Family Expenditure per Capita CAPITA1 d u m m y categories:1 if familyexpenditure per capita (defined as household expenditure divided by household size) i s in the range Rp 0-15,000 per month;0otherwise; d u m m y categories:1 if family expenditure per capita * CAPITA2 i si n the range R p 15,001-25,000 per month; 0 otherwise; * CAPITA3 d u m m y categories:1 if familyexpenditure per capita is in the range R p 25,001-35.000 per month; 0 otherwise; * CAPITA4 reference group; d u m m y categories: 1 if family expenditure per capita is more than Rp 35,000per month;0otherwise.

Housing Index This indicator is established by combininghouse ownership statuswith several other variables that indicate house quality.For this purpose w e set up a composite index that includes such variables as roofing material,wall materials,floor materials,housing size,land-blocksize, source ofhghting,cooking fuel, source ofdrinking water,bathroom type and lavatory type.It should be understood,hnwever,that an elementof subjectivejudgment is involved in reaching a reasonablyjustifiedindex.
*

HOUSE1

HOUSE2 HOUSE3

d u m m y categories.1 if the household does not o w n a house of either poor or faircondition;0otherwise; d u m m y categories: 1 if the household only partly owns a house o f poor t o fair quality,o r if the family owns a house o f poor quality;0otherwise; referencep u p ;d u m m y categories:1 it the household either owns a f a i ro r high quality house, partially owns a high quality house, or does not o w n a high quality house;0 otherwise.

Labour Force Participationby Married Women:The C a s eo fJakarta

10J

Husbniids Employm~iitStntus HOUR1 d u m m y categories:1 if husband i s either not working or working less than 35 hours per week, but i s looking for a job;0otherwise, referencegroup, d u m m y categories:1 if husband i HOUIU. s working 35 hours per week or more and not looking f o r work, or i s working less than 35 hours but not looking for work; 0 otherwise.

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RESULTS DETERMINANTS OF LABOUR MARKET ENTRY FOR MARRIED WOMEN I N JAKARTA


The results of the logit regression using the maximum likelihood estimation model for all married w o m e n (aged 15-54 years) are presented in table 2. Separate equations are set up for each ofthrcr age groups,using the labour force status ofmarried women as the dependent variable.Their results are given In table 3. I n general, table 2 shows that FLFP is positively related to a womans education,t o her husband being a saleso r service worker,and t o partial home ownership (HOUSE2j. whereas variables such as the presence of children, husbands education, and ethnicity show a negative relationship t o FLFP.Age was positively related only among w o m e n of 25-39 years, with the coefficient significant a t 10%. Thus, married women aged 25-39 were more likely t o be in the labour force than women aged 40-54.The disinclination of the latter group t o enter the labour force was very apparent,with the coefficient significant at 1%. The most likely explanation for this i s either:(a) that the husbands income i s sufficientt o support the family,or (b) that there are other adult familymembers w h o participate in the labour market and thus the economic necessity is not great,o r alternatively (cjthat attitudes t o paid work may simply be different for older w o m e n and for the younger generation. Education High educationhas a stmngimpacton the probability o f married women entering the labour force.The coefficientsfor upper secondary school education or above were positively significanta t the 1% level (table2 ) . Even when the equation was tested for different age groups, upper secondary and tertiary levels of schooling were positively related t o the

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Dish Widarti

Explanatory Variables Intercept AGERRl AGEBE?. AGERR3 M'EDU1 M'EDU2 WEDU3 AFMl AFM2 KIDDO
KlDDl

Coefficient
______
~

T-Valueb 3 1 . 7 2 " ' Referencegroup 1 . 2 9 ' 2 . 3 0 " ' Reference group

4.57
0 . 0 9

4.21
0.07 0.78

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n . ~ *
-1.05 Reterence group 4.76".
2 . 6 8 " '

0.98

4.06
4.46

4.w

KIDD2 ErNBl ETNBZ ETNB3 ETNB4 RESYDI RESYD2 RESYD3 HEDUl HEDU2 HEDU3 HOCCAl HOCC.42 HOCCA3 CAPITA1 CAPITA2 CAPITA3 CAPITA4 HOUSE1 HOUSE2 HOUSE3 HOUR1 HOUR2 N C i c
~

Reference group

4 29 4.24
4.01

4 . 1 3 " ' 3 . 5 1 " ' 4.94 Reference group


4.87

4.07 4.02

4.30 Reference group Reference group 3 . 0 3 " ' 3 . 7 2 . " 0.68 3 . 3 5 " ' Reference group 4.45
0.84 4.42

4.23 4.37 0.05 0.20 4.04


0 . 0 7

4.04 Reference group 4.03 0.34 Referencegroup


0.22

4.53 2.47" 2 . 6 2 ' " Reference group 3,236

"Maximum likelihood estimation (logit method). br,IS,I** significant a t 10%. 5% and 1% level respectively C@c = accepted cases. Sourct? 1985Supasdata tape.
,

Labour Force Participation by M a r r i e d Women: The Case ofJakarta

1 0 5

TABLE3 The Prohbrlity o f Married Women Aged 1 5 5 4 Entering the Lnbour Force, by Axe Group, lakorti, 1985"
Explanatory 15-24 Variables Coefficient T Valueb
~

2S39
Coefficient

40-54
Coefficient

T Val"&

T
Valueb

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Intercept WEDUl WEDU2 WEDU3 AFMl AFMZ

KIDDO
KIDDl KIDD2 ETNBl ETNB2 ETNB3 ETNB4 RESYDl RFSYD2 RFSYD3 HEDUl HEDU2 HEDU3 HOCCAl HOCCAZ HOCCA3 CAPITA1 CAPITA2 CAPITA3 CAPITA4 HOUSE1 HOUSE2 HOUSE3

HOUR1
HOUN N@

4.64 2 6 3 5 " ' Reference group 2 00" 0.07 0 . 7 6 0.32 5.3911.69 5 . 4 4 " . 1 . 1 9 4115 4.70 4.m -1.47' Reference group 4 . 9 2 " ' 3 . 7 8 " . 448 4.52 0 30 2 . 7 1 " ' 0.90 0 . 2 0 Reference group 3 . 2 6 " ' 0 69 4 29 0.20 4.23 2 4 2 " ' 11.03 0.11 401 4,Yl 0.29 1 . 1 8 Reference group 4.2n 1 . 2 8 ' 402 4.27 4.79 0 . 0 2 11.20 4.17 Reference group Reference group -2.02" 4.17 1 . 5 8 ' 4.32 1 . 5 3 ' 2 . 5 0 " ' 4 2 1 4.55 0 . 2 6 0 04 11.43 i.411* 2 . 2 7 " 0 16 2 . 0 7 ' 0 . 3 1 Reference g o u p 4.01 4.01 4.117 4.001 11.21 0.05 0.511 0 . 0 5 0.29 004 -1.12 -0.29 Reference group 416 -2.00" 0.13 11.92 1 . 6 T ' 0.12 0.61 0 . 4 9 Reference group 1.18 0.22 2.020 . 2 1 Reference group 1,787 699 7 5 0 4.27

1 01 4 " '

4.53 4.24 0 . 9 1 0 . 0 1

1 9 . 5 4 ' * ' 1 . 4 2 ' 3.5T" 4.02 1 . 3 5 ' 4.53 -1.911-2.20**

4.26 4.07
4.26 4.31 0 . 0 1

4.24

0.113 0.12 -1.11 4.17


4.11 4.75 4.11 0.117
4.34

4.71 -26 4 * * ' 4.70 0 . 5 0 1 . 7 8 ' . n 12 -0 63 2.172 . 9 6 . -

0 . 0 2 4.13
0 . 3 0 0.92

0 . 2 1

1.09

aSee table 2,note a. bSee table 2, note b. <See table 2, nnte c. Sourct: As fortable 2.

106

D i a h Widarti

probability of w o m e n entering the labour force (table 3). O n the other hand, lower levels of schooling (completion of primary and lower secondary school)among older wives (40-54)had a negative impact on LFP.The reverse, however, was the case among younger wives, in particular those aged 1524.Once again,the most probable cxplanation for the negative relationship among older wives i s a difference in the value attached t o paid work for younger and older wives.

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Age at First Marriage The negative impact of early age at f i r s t marriage on LFP was only noticeable among women aged 15224 (table3 ) . Those who marry before 19 years ofage are less likely t o be in the labour force than others in this age group. This i s understandable,since they probably have small children and are not likely t o have been working before childbirth.
Children The presence o f children, particularly those under five years, has a significant negative impact on married womens LFP (table 2 ) . The significanceo f this variable differs according t o the womans age group, and was high for married w o m e n aged 15-24 and 2 M 9 .The presence of children aged 5 1 5 years appeared to inhibit the LFP of married women aged 2539,but not that of other groups (table 3 ) . Ethnicity W o m e n born i n Jakartao r West Javatended not t o be i n the labour force (the coefficients were both significanta t 1%). Those born elsewhere i n Java were also less likely to be i n the labour force than the reference group,although the T-value was not significant (table 2). The results varied among different age groups,however Surprisingly,among young married couples (1524).being born in Jakarta, West Javaor elsewhere i n Java was positively related to LJP, though the coefficientwas not significant (table3 ) . It seems that the value attached t o women working outside the home has changed among young people, especially among those born in Jakartaand West lava. LFP among women born in these areas may have been inhibited by social and possihly strongly Muslim values regarding outside work by older women.Thus for women aged 25-39 and 4-54 the coefficients for West Java and Jakarta were both negative and significant,whereas they were positive but insignificant forwomen aged 1524.

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It is likely that,increasingly,place of birth i s not a good indicatorof ethnicity. People born in Jakarta are not necessarily ethnically Betawenese:many are Javaneseor Sundanese.3 Their values may s t i l l he very close to those of their region of origin. For example, when a Javanesecouple give birth in Jakarta,the child is recorded as Jakartaborn, but herlhis ethnicity i s Javanese,and many values (including those regarding work) are likely t o be influenced by the Javanesesocial system and beliefs. This i s relevant particularly for migrants w h o arrived i n Jakartai n the 1950s and 1960s and whose children would have entered the labour force by 1985.
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Duration o f Migrant Residence Recent arrivals in Jakarta and those with 5-15 years residence were somewhatless likely than the referencegroup t o be in the labour market (table 2 ) . This w a s especially true of married w o m e n aged 15-24 w h o were recent migrants. The T-values for other age groups were not significant below 10% (table 3 ) . It should be remembered that many married women, regardless of their duration of residence, may be 'passive' migrants, especially the wives of civil servants,and for this group the urgency o f working may n o t be great. Family Economic Status Husbarrd's Education. As a proxy for family economic status,husbands education proved a strong determinant of FLFP in the regression analysis. The likelihood of w o m e n entering the labour force was negatively associated with both moderate and high levels o f husband education,with the coefficient significant at the 1% level (table 2).The negative impact of a husbands education on the wife's participation was particularly significantif the husband had upper secondary school or higher education,and was most apparent for wives in the age groups 15-24 and 40-54 (table 3) It w a s also significant a t this level of education among w o m e n aged 25-39, although at a lower level. Similarly,a negative impact of husbands education a t a moderate level was significantamong younger wives aged 15-24and 2S39, a t 5% and 10% respectively (table 3). The data suggest that a husbands potential earnings a t higher levels ofeducationmay allow wives the option of not participating in the labour market.

?he term 'Betawenese' refers t o people whose ancestors are native t o Jakarta. 'Javanese' refers t o people originally f r o m Central Java,Yogyakarta and East Java;those originally imm West Javaare referred to as 'Sundanese'.

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Husbnrids Occiipnfion. This i s also used as a proxy f o r family economic status.Contrary t o our hypothesis,the data in general show that husbands employment as a white collar worker (professional, administrator,manager or clerk) was not negatively related t o the likelihood ofwives entering the labour force.The relationship between husbands occupation and LFP of wives was positive and prominent if husbands were sales or service workers,with the coefficient significant at 1% (table 2 ) .However,when one looksat the resultsaccording to age group,some interesting featuresemerge (table 3).The expected negative sign for husbands occupation as a white collar worker occurred only for married women aged 40-54, although again the association was not significant.The positive coefficient for husbands occupation as sales or service worker was significantat 5% forwomen aged 15-24 and 2539. The data suggest that the income effect as a potential discouragement t o FLFP does not work nearly as strongly through occupation as it does through education.One possible explanation is that the incomes of many white collar workers in Indonesia are quite low: teachers and clerical employees i n thc c i v i l service are two examples.Another i s that quite a high proportion of white collar husbands are tertiary (rather than secondary)educated,and marry tertiary educated wives,w h o are more likely t o work for opportunity cost reasons. Faniiiy Expenditure. Monthly per capita expenditure of R p 15,00125,000(CAPITA2) appears t o have only a slight positive influence on the probability of woinen entering the labour market.Thus for no group was household expenditure significantly positively related t o FLFP,and it w a s negatively related where per capita family expenditure was Rp 15,000 or less (CAPITAI), or between Rp 25,001 and R p 35,000 (CAPITA3).When w e considered womens age groups separately,the impact of monthly per capita family expenditure of R p 15,000 or less was significant only among older wives (aged 4-54), a t the 5% level (table 3 ) . Housing. Only partially owning a low quality house (estimated by HOUSEZ), as expected,has a highly significant positive impact on the LFP ofwives (table2).The evidence was particularly significant among married w o m e n aged 15-24 and 40-54. Younger wives aged 15-24 years were more likely t o be in the labour force either if they did not o w n a house (HOUSEI), or if they s t i l l had t o pay offtheir house or owned a poor house (IIOtiSE2); the coefficient was significantonly for the latter,at the 5% level.For wives aged 25-39, the impact of having still to pay offthe house was positive but not significant.However, it was strongly negative among those wives w h o did n o t o w n a house of either poor or fairquality (HOUSEI)Among older women,aged 40-54,

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a strong positive association between either HOUSE1 o r HOUSE2and LFP was significanta t the 5% and 1% levels respectively (table 3 ) . Husbands Employment Status In line with our hypothesis,the regression coefficient shows that labour underutilisation of husbands i n general was likely t o induce wives t o enter the labour market,and was significant at 1% (table2). However, when the data were disaggregated by age, a significantpositive effect was evident only among wives aged 25-39,at the 5% level (table 3). RESULTS: DETERMINANTS OF LABOUR MARKET ENTRY

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FOR MARRIED JAKARTAWOMEN OF DIFFERENT EDUCATIONAL CLASSES

We have noted the impact ofa number of the supply side factorson the LFP of married women in general.Although some variables yielded the
expected results,others did not show a clear pattern, and some results were the reverse of our hypotheses.W e now turn t o the analysis of data on married women in Jakarta segmented according t o their levels of education. Age The results i n table 4 show that age has a significant positive impact on the likelihood of labour force participation by less educated married women. The regressioncoefficientssuggest an inverted J pattern,with peak participation a t the age of 25-39 years; this accords with the pattern shown in table 2. Child bearing and child rearing, in particular among low income families,i s likely t o increase the need for additional income.This i s suggested by the absence of a negative relationship between the LFP of less educated w o m e n and older age. In the moderately and highly educated groups,older women are less likely t o be in the labour market, particularly those aged 4 0 years and above (significant a t l%), while the influence of age on the LFP of women of 25-39 years did not seem to he significant.One possible explanation was that many women in this group may only be involved in semi-stable or semi-formalemployment,where maternity leave i s not provided and younger and singlewomen are preferred.Therefore,if older women quit their lobs,it i s rather difficult for them t o re-enterthe labour force.

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TABLE 4 T h e Piobobility o fM a r r i e d Women Aged 15-54 Entering the hbour Force,


by Educational Group, lakarta, 198P

Explanatory
Variables

WEDUl Coefficient T
~

WEDU2 Coefficient T
VaIueb

WEDU3

Coefficient
~

T
Valueb 1 6 . 2 2 " ' -0.44 2 . 3 9 ' 2 . 9 1 ' " -2.W' 1 . 4 5 ' 2 . 3 3 " ' 2 . 6 3 " .
4.86

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Intercept AGEBBl AGEBB2 AGEBB3 AFMl AFM2 K I D D O KIDDl

4.00 027 0 23 0.10 4.48 4.15 404 4.01 0.32


4 ni 4.03
0on1 4.33 4 34

Valueb __ 1 1 . 1 6 ' * *

KIDDZ
ETNBl ETNB2 ETNB3 ETNB4 RESYD1 RESYD2 RESYD3 HEDUl HEDU2 HEDU3 HOCCAl HOCCA2 HOCCA3 CAPITA1 CAPITA2 CAPITA3 CAPITA4 HOUSE1 HOUSE2 HOUSE3 HOUR1 HOUR2 N@
~

0.18
4.28

4.01 4.12
0 . 1 0

0.35 0.13 1.048

1 9 . 7 0 . ' ' Reference group 0.05 0.40 191" 4.45 2 . 8 5 ' " 141' 405 457 0.89 Reference group 3.60"' 448 4 . 3 4 " ' 420 -1.70" -1.15 Reference group 4.29 2 . 5 2 ' " ' -0.18 4.14 -131' 4.03 -001 -029 1 . 3 4 ' Reference p u p 4.03 4124 4.08 0.01 0.04 4 26 Reference group Reference group -0.47 -3.n9*** 4.001 446 -3.21*** -1.03 009 0.78 -1.21 0.29 3 1 7 ' " 1.86" Reference group -1.24 0.10 0.55 0 . 1 1 0.02 4.03 4.09 4.45 4.47 Reference group -0.17 -1 83" 0.90 ( 1 . 5 1 2.19" 1.87" Reference group 0.26 1 nz** 0.90 Reference group 628 1,560
4 . 8 0

5.98 4.06 4.44 4.35 -0.37 4.20 4.29 437 4.01


4.18

4.08 4.42 4.77 0.03 -0.03 4.20 0n 8


410

1 . 2 9 ' 4.73 1 . 2 8 ' 2 . 3 2 ' " 0.29 -0.18 -1.17 0.71 -0.75 0.31 1 . 5 4 ' 1.61.

0.04
1 . 0 1

0.26

aSee t a b l e 2,note a. bsee table 2,note b. CSee table 3,note c.


Source As f a rt a b l e2

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Age at First Marriage Earlier age a t first marriage, according t o our hypothesis, w i l l discourage women from entering the labour force.However,the study found a slightly positive associationbetween early age a tf i r s t marriage and LFP among less educated wives.A possible explanation for this i s that the majority of these w o m e n were fromlow income families.Their involvementi n the labour market was likely t o be due t o the need for additional income.In contrast,a negative association between age at first marriage and employment was found among highly educated women, with the coefficient significant at 1% (table 4 ) .This suggests that early age a tf i r s t marriage discourages educated wives from entering the labour force.Since better educated w o m e n are likely t o marry highly educated husbands,it i s possible that members of this group hold a middle class view of 'idleness' as a status symbol. Moreover,many w o m e n w h o marry young are likely t o have children early,and in the absence of economic hardship this probably inhibits their entry into the labour market. Children Our hypothesis that the normal negative relationship between FLFPand fertilityamong less educated women would be unlikely to hold was not confirmed by the results.The presence of children, particularly those under fiveyears,was strongly negatively associated with the likelihood o f participation by less educated married women, with the coefficient significant a t the 1% level.The regression coefficient was smaller and insignificant if the age of children was 5-15 years. Such a negative impact was also evident for moderately and highly educated wives (table 4 ) .The presence of children under fivewas strongly negatively associated with the likelihood of participation by this group ofwomen, a t a 1% significance level.The presence of older children (5-15 years) was less significant,although a negative effectwas shown Since the availability of surrogate mothers i n urban areas such as Jakarta i s closely related t o the family's economic status,better educated women are more likely t o have access t o child care. Nevertheless this does not always ensure a married woman's entry into the labour force.Thus,the negative association between f e r t i l i t y and FLFP may still exist even i f surrogate mothers and home workers can be obtained. I n brief, the results suggest that maternal role incompatibility i sa problem f o r uneducated as w e l l as for educated wives.The explanation may be that while the type o f employment many less educated women enter i s of a non-formalnature,i n a large city l i k e Jakartathe location o f work may require them to be away from home. The types of

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employment that are compatible with a maternal role,as discussed by Jaffeand Arumi (1960),are those in household industriesin rural areas. Such work is usually carried out a t home, and can be combined with child care.Moreover,the social setting i n Jakartamakesit more difficult than in rural areas f o rless educated women to find mother surrogates. Ethnicity The positive impact of being Javanese-hornon the probability of entering the labour force was clearly shown among less educated women, with the coefficient significant a t 10% (table 4 ) .This differs slightly from the result shown for all married w o m e n (tableZ ) ,although it is similar to that for young married w o m e n aged 15-24years (table 3 ) . Such a result may be a manifestation of norms about working among poorer Javanese-born wives.The higher rate of LFP among less educated Javanesew o m e n is also consistent with the survivalstrategiesof poorer migrants,w h o often cannot rely on an extended family network for financialsupport.If w e accept that the Javanese-bornare mainly ethnic Javanese, then the pattern is consistent with Hull's (1976)argument that lower class Javaneseview paid work as a normal part o f a woman's l i f e . In rural Java this view applies only to w o m e n i n low income families! Hull ( 1 9 7 6 ) furthermore maintains, although her explanation might be more valid in rural areas as her study was based on Javanese village l i f e , that in a Javanese marriage, husbands and wives are supposed to work togetheras a team t o maintain family wealth. Among moderately educated w o m e n the results show that Jakarta and West Java-bornmarried w o m e n are not likely to be in the labour force,with the coefficientsignificant at 1% and 10% respectively.If w e accept the argument that this negative result i s due partly to cultural factors,w h y were the coefficients for association with birth in Jakarta and West Java insignificant among less educated wives (table 4 ) ? It appears that being a w o m a n born i n Jakarta(Betawenese)or West Java is not a disincentive t o FLFP.The difference between less educated and moderately educated w o m e n may be that many Jakarta-born among the former can gain niches in the informal sector (e.g. trade stalls)whereas

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4Middle and upper class Javanesei n the late 19th and early 20th century (Knrtini's era) prcfcrred their daughters t o stay at h o m e even if they were w e l l educated (Geertz 1985).Having a high education was seen as a 3ymbol of prestige rather than an economic asset. Wvmen were not encouraged tv work farprofitor money,because t h i swas consideEd t o degrade their nobility.

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moderately educated w o m e n are discouraged by social values from taking up suchjobs5 The results also suggest that more highly educated wives born in Jakarta o r West Java were less likely to enter the labour market than those born elsewhere in Java,with both results significantat the 1% level.This puzzling result implies that ethnicity s t i l l has a strong impact on the LFP of educated married women, and conflicts with Joness (1977) proposition that education may weaken the cultural constraints on womens entry into the labour market,because the more educated a woman is, the more choicesshe is likely t o have.W e can argue,however, bearing in mind that Joness(1977)study was based on the 1971 Population Census,that upper secondary school graduates were likely t o have more job opportunitiesopen to them a t that time,espeually in the formal sector,than in the 1980s It is likely that a negative coefficient f o r these two ethnic groups is related mainly t o the behaviour of those whose education was only t o upper secondary rather than tertiary level.hThus the behaviour o f these w o m e n might be expected to be similar to that ofthe moderately educated group.Only a small number of highly educated w o m e n in the study were university graduates.It is much less likely that the decision to work among university educated women would be heavily influenced by ethnicity (place o fb i r t h ) . Duration of Migrant Residence It was a hypothesis of the study that persons w h o had stayed in Jakarta longer would probably he more familiar with labour market networks, and thus more likely t o be in the labour force.However,in the analysis for married w o m e n as a whole,duration ofresidence appears to have had relatively l i t t l e effect on FLFI (table2).The results forrecent less educated migrants and those of 5 1 5 years standing did not follow a clear pattern (table 4 ) . This is inconsistent with studies that have shown higher FLFP among migrants of longer standing.Perhaps the

5A high proportion ofless educated Jakarta-barn may be ethnic Javanese(and not indigennus Betawenese)and hence have work patterns s i m i l a rt o Javaneseborn bThose with Only a secondary school education today can at best find work as clerks or in other adminiitrative jobs.In fact, unemployment rates are highest among upper secondary schoolgraduates. 7This is borne out by the high correlation shown i n the bivariate analysis between ethnicity and LFP of married women with high educational

backgound.

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explanation l i e si n the size o f the Jakartalabour market and the greater possibility of even recent uneducated female migrants finding a job.A similar pattern was shown for moderately educated wives. Highly educated recent migrant married w o m e n were less likely t o be in the labour market, with the coefficient significant a t the 10% level. This probably reflects the fact that many secondary educated migrants come t o Jakartat o continue their schooling a t tertiary level. Family Economic Status Husbnnds Education. This variable serves a s the key indicator of the husbands permanent income. The results indicate that it was significantly negatively related t o LFP f o r women as a whole (table 2 ) . However,no significant effect was revealed among less educated wives, even though the sign o f the regression coefficient was in the expected direction for this group. It i s possible that women of lower education were less likely t o be affected by social values regarding paid work than more educated women.As predicted by our hypothesis,there was a significant negative relationship between the LFP of moderately and highly educated women and their husbands being educated above primary level. This i s probably due to the effect of the husbands potential income. Such a result confirms the findings of other studies carried out in developed and developing countries (for example, Cain 1966;Bowen and Finegan 1966;Sweet 1973;Peek 1978) Husbnrrds Occuyntioii. Less educated wives whose husbands worked as professionals or managers were not as likely as other broups t o enter the labour force,although the coefficient was insipficant. Such occupationsare likely t o be relatively secure,and the income effectof the husbands occupation appears t o overshadow the (relatively low) opportunity cost t o the wife of not working. Less educated women are also likely to have relatively lower aspirations,and to be content with the income levels of their husbands. The figures confirm that less educated w o m e n whose husbands work as either sales or service workers are likely to be i n the labour force, with the coefficient significanta t the 5% level.A similar pattern was shown by moderately educated women whose husbands worked i n these occupations,with the result significant at the 1% level (table 4 ) .Given the socio-economic background ofwomen in this group and the occupationstheir husbands tended t o be engaged i n ,this finding supports the existence of the additional worker effect Thati s ,wiveseconomic participation may be due t o the instability,insecurity and intermittence of husbands jobs, especially among less educated groups On the other hand,the LFP of

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Labour Force Participationby Married Women:The Ca5r of J.ikarta

115 -

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more educated wives does not seem to be affectedby the husbands occupation. Fnnirly Exycrrditurc. The results do not show a clear effect o f family expenditureon married women's labour forceparticipation." Although the coefficients were insignificant,any level of family expenditure per capita seemed to inhibit less educated women's economic participation. Furthermore,there i s no clear effectof familyexpenditure on the LFP of wives with either moderate or high education The most important finding is that there I S a negative relationship between family expenditure per capita of Rp 15,000 or less and FLFP In table 3 w e observed that monthly per capita expenditure ofR p 15,000or less was negatively related to the LFP of married w o m e n aged 40-54 years. Relating this finding t o table 4, it is possible that among the more highly educated women, those few with per capita family expenditure of Rp 15,000or less w h o were discouraged from entering the labour market were older women Hoiisiii~ As a n indicator of wealth,the housing index had a strong impact on the LFP ofmarried women The results show that moderately educated w o m e n whose families rented either a poor or a fair quality house (HOUSEI) were not likely t o be in the labour force(table4 ) . They furtherindicate that wives whose housing index was HOUSE2 (1.e. who partially owned a house, or owned a poor quality house) were more likely t o be in the labour force (table2). Husbands Employment Status Our hypothesis was that having an unemployed or underemployed husband would relate positively t o the likelihood ofa woman's entering the labour force. The insignificantresult for the less educated group may be explained by the fact that hours worked in the past week are not a good indicator of husband's potential income or work intensity, especially in the informal sector where hours worked are likely to fluctuate significantly from week to week. The results confirm that moderately educated w o m e n were encouraged to enter the labour forceif their husbands were underemployed and looking for work, with the coefficientstatistically significant a t the 5% level. This was also the case forhighly educated wives,although at a lower significancelevel.

f married *Bivariate analysis of household per capita expenditure and LFP o w o m e n in general showed a positive awxiatmn, yet the pattern was not consistent when the data were disaggregated according t o women's

educational levels.

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Summary A comprehensivepicture of the results of the multivariate analysis can be seen by comparingtables 2 and 4. Apart from the presence of children under five and a fair housing index (HOUSEZ), none of the variables was consistently significant for all educational classes.This indicates that a different mix of variables tended t o influence the LFP of women with differentlevels of schooling.The most importantconsistent pattern relates t o the presence of children under fiveliving a t home:this had a highly significant negative influence on FLFP in the case of less, moderately and highly educated w o m e n (WEDUl, WEDUZ and WEDU3), though the regression coefficient was lower among the highly educated group. Greater access t o servants among highly educated women may have counterbalanced the influence of a more formal sector work environment on FLFP. The results further indicate that there was a greater number of significant variables that were common t o WEDU2 and W E D U 3 (moderately and highly educated women) than t o WEDUZ and WEDUl (moderately and less educated women). Nine variables showed significanteffects on the LFP of both moderately and highly educated women, but only three were significant for both less educated and moderately educated wives.Being a married woman aged 40and above; having at least one young child a t home; being Jakarta or West Javaborn; having a husband whose education was either moderate (HEDUZ) or high (HEDU3); having a f a i r housing index (HOUSEZ); and having an unemployed or underemployed husband all yielded significant coefficients with the expected signs for both moderately and highly educated women. More variables were significant as determinants ofthe decision and capacity t o work among moderately educated women than among the other educational classes. Perhaps the wide range of variables that influence LFP among this group can be related t o their greater diversity of work situations,which include both formaland informal sectorjobs. Thus,for example,while older w o m e n and Jakarta-born women in this group were less likely t o work, perhaps because oflack ofopportunities i n the formal sector,a significantproportion were apparently induced t o work in sales and services(presumably many in informal activities)if their husbands worked in these sectors.

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CONCLUSION
Although present t o some extent, the precipitating conditions(e.g. dissatisfaction with household income) appear not t o be as importantas expected for less educated women. This i s suggested by the insignificant results for family expenditure and husbands employmentstatus. Within the moderately educated group,despitethe negative effects o f having a higNy educated husband,having children under five,being Jakarta-born or being 40 years o r older, w o m e n tended to be in the labour forceeither if their families s t i l l had t o pay off a home loan,or if their husbands worked in sales and service occupations or were underemployed.Among this group,w e can see that a range of forces tends t o influenceFLFP.These include some cultural factors(ethnicity), demographic factors (maternal role incompatibility),and sodo-economic factors (precipitntirqconditionssuch as income effect). Higher education did not seem to weaken the inhibitive power o f ethnicity (being Jakartaand West Java-born) on entry into the labour force.Among highly educated wives,however,although the influenceo f opportunity cost appears t o have been prominent, some other forces might have come into play in determiningwomens entry into the labour market. This i s suggested by the insignificant impact of husbands occupation:w o m e n in this group were n o t affected by their husbands inconic status because they had their o w n earning power.Opportunity cost factors were counterbalanced by factors such as values about paid work.The impact of husbands education,f o r example,was very strong: this probably reflects social values among this group that discourage married womens involvement in the labour force,rather than income effects. In sum, the relationship between education and LFP among less educated married w o m e n was reinforced by precipitntingcoridrtions. The LFP of moderately educated women,on the other hand,was affected by enabling conditions such as age of children, in addition to the husbands income effect, while participation o f highly educated women was influencedby : f n c i l i t a t i r i g cmditions such as relative employment opportumties and opportunity costeffects. The study has sought t o ascertain the extent t o which supply factors, operating independently of the demand f o r labour, could account for LFP differentials among particular groups of women. O n the whole,such supply factorsdo n o t provide an entirely satisfactory explanation.For example, the negative relationship between husbands education and wifes labour force participation was n o t consistent for the three educational groups.The assumption that education w i l l diminish the

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C i a h ' W i d a r t i

restrictivepower of culturedoes not seem t o hold.The failureo f supply side factors t o explain f u l l y the extent and causes o f LFP differentials suggests that some further answers might l i e either i n the effect o f demand factors or i n the interaction between supply and demand factors.

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