An empirical study on training and decent work for nonwage workers in Indonesia

Most non-wage workers have jobs that cannot guarantee an escape from poverty. They still choose to work rather than be unemployed despite limited or very long working hours, low income, marginalized, casual and mobile work that is far from decent work and is in informal employment. This study aims to analyze the effect of general and special training and education levels on the acquisition of decent work for non-wage workers in Indonesia. Using a cross-sectional survey design, this study uses data from the 2019 Indonesian National Labor Force Survey with a sample of 294,696 non-wage workers from the employed labour force. This research also produces a decent work index. The results found that general and specialized training and education positively and significantly affect getting decent work. However, as the level of education increases, the contribution of training decreases and vice versa. Based on the type of training, the lower the level of education, the more workers need specialized training. The lower the education level of non-wage workers, the more training is required to get a decent job and vice versa. This research proves that human capital in the form of education and training is decisive in obtaining decent work for non-wage workers. This research enriches the field of economic theory with the application of the supply of labour theory, where there is a positive relationship between quality of labour and quantity of labour in obtaining decent work. In addition, it provides a formula for the government to improve the condition of the Indonesian labour market, especially for entrepreneurs who are still marginalized, through the improvement of the twelve-year education program and the development of technology-based general and special training in obtaining decent work. This research aids in establishing a training model for decent work for non-wage workers.