Gender differences in the effect of marital status and education on underemployment in Indonesia

Purpose This study examines how education, gender and marital status influence the likelihood of underemployment among informal workers in Indonesia. Women dominate informal jobs, yet men show higher underemployment rates. Underemployment also occurs among university graduates, with the highest rates among those with lower and upper secondary education. Design/methodology/approach Binary logit regression is applied to data from Indonesia’s 2023 National Labor Force Survey (Sakernas) to identify the determinants of underemployment in the informal sector. Findings Men are more likely to experience underemployment than women across both marital groups. Workers with upper secondary and tertiary education face a higher risk than those without primary schooling, particularly among single workers. For married workers, education has no significant effect. At the macro level, regional economic growth, minimum wages, open unemployment rates, and the share of informal employment influence underemployment, with the significance and magnitude varying across subgroups. Research limitations/implications Underemployment reflects both individual characteristics and structural labor market conditions. Employment policies should account for gender, marital status and education while promoting inclusive growth and regionally adaptive wage setting. Originality/value This study contributes original evidence by integrating gender and marital status into underemployment analysis in Indonesia’s informal sector. It also combines individual and macro-level factors to provide a comprehensive view of underemployment dynamics.