Consistency between Sakernas and the IFLS for Analyses of Indonesia’s Labour Market: A Cross-Validation Exercise

Abstract

This article assesses the consistency between Indonesia’s National Labour Force Survey (Sakernas) and the Indonesia Family Life Survey (IFLS) for analyses of the country’s labour market. I show that Sakernas and the IFLS depict different levels of and changes in labour-market indicators. My estimates of the labour-force participation model, the sector-choice model, and the Mincer model are all statistically different between the two surveys, although the magnitudes are similar for labour-force participation and sector choice. The IFLS shows a much higher return to education than Sakernas, according to the Mincer model. In addition, I find that the cross-sectional sample of the IFLS and the panel sample of the IFLS corrected for attrition yield similar coefficient estimates from all equations. The findings in this article provide an important reference for researchers interested in using Sakernas and the IFLS—either individually or combined—to analyse labour-market issues in Indonesia.