U-Shaped Theory in Indonesia: Evidence from Sakernas 2010 and 2017

Abstract

Female Labor Force Participation Rate (LFPR) in Indonesia showed a plateau trend 20 years ago while economic growth was increasing positively. Since then, high Gross Regional Domestic Product (GRDP) (province level) has not been accompanied by high female LFPR although the Gender Development Index (GDI), which shows a gap between men's and women's development, continues to increase. These result show that the relationship between the GRDP per capita and the female labor force participation did not form a U-Shape. The pattern seen in female LFPR tended to decrease along with the increase in GDP per capita in many provinces. The distribution of female LFPR and the economic growth of Indonesian provinces could be seen through GRDP per capita, and in both 2010 and 2017, they had a pattern similar to that of two decades ago. Bali and East Nusa Tenggara (NTT) are the provinces with the highest female LFPR. However, while NTT has the lowest GRDP of all provinces, Bali has attained a level equal to the national average.