Digital Skills, Internet Use, Human Capital, and Informal Employment

Informal employment remains dominant in East Java despite the rapid expansion of digital access, indicating that technology alone does not automatically lead workers to more secure jobs. This study examines the effects of digital skills, internet use, and human capital on the probability of informal employment. Human capital is represented by educational attainment, job-training participation, and internship experience. The study uses a quantitative cross-sectional design and microdata from the August 2024 National Labor Force Survey. The analytical sample consists of 46,326 employed individuals aged 15 years and older with complete information on all research variables. Binary logistic regression with robust standard errors and average marginal effects is applied because employment status is dichotomous. The results show that digital skills, internet use, higher education, job training, and internship experience are negatively and significantly associated with informal employment. Higher education produces the largest reduction in the predicted probability of informal work. These findings imply that digital capability and human-capital policies should be integrated with the expansion of formal employment opportunities to improve job stability, productivity, and worker protection.