Socio-Economic Characteristics of Women Workers in the Informal
Sector in the City of Palembang
Mirna Taufik
1
, Monanisa
1
, Nengyanti
2
, Bambang Bemby Soebyakto
2
, Armansyah
1
, Sukmaniar
1
,
Wahyu Saputra
1
1
Geography Education Study Program, PGRI Palembang University, Palembang, Indonesia
2
Population Study Program, Postgraduate, Sriwijaya University, Palembang, Indonesia
Keywords: Socio-economic, women workers, informal sector.
Abstract: Recently, most of the cities offer employment opportunities to women with a view of promoting economic
development. This is marked by an increase in small and large scale industries within the informal sector.
This leads to more competition the skilled and strong entities survive and advance. One of the things women
can do to improve the financial position of their families is to work, especially in jobs that do not require
formal education. This study aims at explaining the socio-economic characteristics of women working in the
informal sector. The research was conducted in the city of Palembang with 16 sub-districts. The
methodology employed was mixed with data collection techniques including survey, interview, observation
and documentation. An open survey was conducted on 300 respondents and 4 key informants from the
relevant agencies selected through purposive sampling. The gathered data was analyzed using frequency
distribution for quantitative while reduction, display and conclusions were used for qualitative ones. The
findings of this study established the characteristics of female workers. They are predominantly aged 25-29,
married, and have high school education with an income of Rp. 0 - Rp. 200,000 daily.
1 INTRODUCTION
Life in urban areas is characteristically by
challenges that need to be properly addressed. For
instance, there is dense population along with
limited availability of jobs, and this negatively
affects the population. If there is a higher demand
for jobs compared to the available opportunities,
increases unemployment rate. One of the most
affected section is the informal sector. According to
Farinmade, Soyinka, & Siu (2018) the informal
sector in urban areas is a social, economic and
physical activity not taxed in a particular
geographical area.
In developing countries, there is usually a large
population with a low education level as well as
limited skills, a challenge that calls for remedial
course of action (Armansyah; Kiki Aryaningrum,
2018), the individuals with limited education and
skills are more likely to choose jobs that can low
requirements. For this reason, new business fields
tailored to the competencies of such people should
be created. In the informal sector, the work patterns
and income of employees is dictated by various
factors such as education (Nguimkeu, 2014).
The private sector has jobs that do not require
special levels of education and skills. According to
Khan & Khan (2009) states that informal sector
employment in urban areas is dominated by women.
This is attributed to the fact that such jobs do not
require higher education and special skills, apart
from having a flexible time (Bambang &
Armansyah, 2016). The time flexibility allows them
to work as well as taking care of the household
(Wulantari & Armansyah, 2018). Women working
in the informal sector are often the breadwinners of
the family. Their income are used to meet their daily
needs of the family (Mohapatra, 2012), and
supplements the husband's income (Bambang &
Armansyah, 2016). Examples of works include
trading, household assistant, and onion peeleing etc.
The highly demanding urban life along with the
ever increasing cost of children’s’ education
motivates women to work in helping their husbands
and parents meet family needs. Most of the works
Taufik, M., Monanisa, ., Nengyanti, ., Bemby Soebyakto, B., Armansyah, ., Sukmaniar, . and Saputra, W.
Socio-Economic Characteristics of Women Workers in the Informal Sector in the City of Palembang.
DOI: 10.5220/0008440503870393
In Proceedings of the 4th Sriwijaya Economics, Accounting, and Business Conference (SEABC 2018), pages 387-393
ISBN: 978-989-758-387-2
Copyright
c
 2019 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
387

that do not require specialized skills are generally
carried out by women (Chmutina & Rose, 2018).
2 LITERATURE REVIEW
2.1 Informal Sector Female Workers
According Deribie (2012), the number of women
engaging in the informal sector is increasing,
particularly because of alarming rate of migration
from rural to urban areas. The unavailability of
opportunities within the formal sector renders them
jobless and that is why they join the informal sector,
the alternative choice for job seekers. In addition,
this sector is attractive to female workers because of
the flexible time and low requirements.
The results of the Onwe (2013) study identified a
portrait of the informal sector. He stated that “Our
analysis indicates the following: first, the informal
sector is continuously expanding in developing
countries and has been serving as a ‘safety belt’ in
providing employment and thus income; secondly,
informal sector activities, often described as
unrecognized, unrecorded, unprotected, and
unregulated by the public sector, are no longer
confined to marginal activities but also included
profitable enterprises in manufacturing activities;
third, the informal sector is largely characterized by
low entry requirements, small-scale operations,
skills acquired outside of formal education, and
labour-intensive methods of production; forth, the
informal sector is defined according to different
classifications in terms of activity, employment
category, location of key players, and income and
employment enhancing potential”.
The above deduction at very relevant to the
realities existing today. The figure of the informal
sector is illustrated by the lives of unsuccessful
workers. This is due to the relatively low skills,
education, competitiveness, and knowledge
possessed by the workers. The female workers in the
sector still experience discrimination apart from
being marginalized. There is no appropriate
government policy to address the informal sector
workers, even though it accommodate most of the
workers. This research is meant to improve
information and an understanding of the informal
sector female workforce. The follow-up is expected
to be a means of improving policy planning to the
informal sector workforce, especially women.
2.2 Preliminary studies
This is a follow up of past research. The previous
works include; reasons women work in the informal
sector (2014), male perceptions of female migrant
workers in the informal sector (2016), opportunities
and challenges for informal sector female workers
facing the Asian Economic Community (AEC)
(2016-2017). In addition, the author borrowed from
other related works such as; the development of
female labor in the sector informal: the results of
analysis and proxy of population census data
(Hakim, 2011).
2.3 Delimitation of Research
The research was carried out in the city of
Palembang, covering 16 sub-districts. The object of
the study was the informal female workers. The
problems studied related to the socio-economic
characteristics of female workers in the informal
sector within Palembang City. The social
characteristics included age, marital status, and
education, while the economic characteristics used
were income indicators.
3 METHOD
The methodology utilized was mixed, combining
both quantitative and qualitative research methods.
Through this combined method, researchers were
expected to obtain a more comprehensive, valid,
reliable, and objective (Sugiyono, 2016). Data
collection was conducted by means of surveys and
in depth interviews. And the survey was conducted
on 300 respondents and in depth interviews were on
4 informants. Respondents and informants selected
through purposive sampling with a predetermined
criteria. The survey method was chosen following its
ability to obtain the general picture of population
characteristics such as the characteristics of the
community based on the age group, gender,
education, occupation, religion, ethnicity, and
ethnicity (Pitoyo, Eddy, Pande, & Sumini, 2017).
For qualitative methods, in depth interviews
supported by documentation and observation was
used. The survey data collected was analyzed using
descriptive statistical frequencies while the interview
data analysis was based on stages of reduction,
display, and deductions. The validity of the data
used was credibility, which included techniques for
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increasing perseverance, extending observations,
member checking, and triangulating data. The final
results were presented using descriptions
(descriptive) in form of graphs.
4 RESULTS AND DISCUSSION
4.1 Age of Informal Sector Female
Workers in Palembang City
Age grouping can be categorized into 3,
unproductive age (0-14 years) and (65-75 years),
and productive age (15-64 years) (Bambang,
Saputra, Sukmaniar, Taufik, & Damayanti, 2016).
The age of female workers in the informal sector of
Palembang City range from 10 to 54 years.
However, based on age classification, informal
sector female workers are in the productive age
group. This is in harmony with the findings of
Armansyah; Kiki Aryaningrum (2017) which states
that the majority of female workers in the informal
sector within the City are in the productive age
groups. This includes those who open small
businesses depending on their abilities. Figure 1
describes in details the age groups of informal sector
workers in the Palembang City.
Figure 1: Age of Informal Sector Female Workers in Palembang City.
From Fig. 1, female workers can help the family
economy. For instance, I_Na-01a said “I work in the
informal sector because I want to help increase
family income. My husband's income is not
sufficient to sustain our daily life. “Data shows that
19.3 percent of female workers aged 25-29 years
who dominated the sector, then followed by those at
the age of 20-24 at 16.7 percent. Those between the
ages of 35-39 years showed a value of 16.3 percent
while those between 30- 34 years showed a
significance value of 12 percent. At the age of 40-44
years they were 10 percent while at ages 15-19 years
were 9.3 percent. Those at the age of 45-49 years
were 8.3 percent while the ones at the age of 50-54
years 7.7 percent. The lowest age, 10-14 years, had
the minimum percentage, only 0.3% because most of
them were still in school.
Some work in the informal sector on part time
basis due to the inflexible working hours of full time
jobs. With part time jobs, they can attend to other
activities such as schooling (Bambang &
Armansyah, 2016).
Socio-Economic Characteristics of Women Workers in the Informal Sector in the City of Palembang
389

4.2 Marriage Status of Informal Sector
Female Workers in Palembang City
The demographic characteristics and marital
status for female workers in the informal sector of
the city of Palembang are shown in Fig. 2. This
illustration helps to explain reasons for opting to
work in the informal sector.
Figure 2: Marriage Status of Informal Sector Female Workers in Palembang City
The above data shows that among the female
workers, the married dominates. To be precise 74
percent of female workers in the informal sector of
the city of Palembang are married. When
interviewed deeply, it came out clear that the reason
they worked was to earn income to help reduce
family burden as expressed by the informant. I_Ra-
02 sentimrents “my Husband's income is not enough
to buy food as well as paying school fees for the
children. I seek additional income by working in the
informal sector". This was in accord with the study
by (Bambang & Armansyah, 2016), which stated
that in addition to meet economic needs, women
decided to work because the income earned by the
husbands was insufficient for daily needs.
Meanwhile, unmarried people work to help with
school and college fees as well as helping their
younger siblings' schooling. They do very simple
jobs such as selling pempek (Palembang Cake) and
baking cakes, ice selling and so on.
For female workers not married, the figure goes
up to 24.3 percent while the divorced female
workers only reached 0.4 percent. However, the
income received was approximately Rp. 100,000 per
day and can meet their daily needs. This is different
from the female divorced workers whose goes up to
1.3 percent. With a long life experience and an
ageing more than 50 years, they are able to master
the art of selling land. For this reason, earn income
ranging from Rp. 100,000 and Rp. 500,000. This
shows a positive step in improving economic
conditions and the ability to compete for
employment in the informal sector, especially in
large cities such as Palembang City.
4.3 Informal Sector Women's
Education in Palembang City
Women who work in the informal sector can be
assessed base on the level of education. According
to data from the field, the demographic
characteristics of the basis of education can be
described in detail through the picture below:
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16,3
16,7
59
1,7
6,3
0
10
20
30
40
50
60
70
Primary School Junior High School Senior High School Diploma Bachelor
Education
Figure 3: Informal Sector Women Worker Education in Palembang City
The data above shows female workers in the
informal sector have education a higher level of
education with a significant score of 59 percent. The
education of female workers in the informal sector
of the city of Palembang has been quite good with a
predominantly high school education. Meanwhile at
the elementary level only 16.3 percent showed.
Female workers with junior high school education
were only 16.7 percent. Those who dropped out of
school after elementary or junior high school
decided to work in the informal sector as stated by
the informant I_Mi-03 "I only have elementary
education, so I cannot work in the formal sector ".
Those who work in the informal sector to had
low education. Economic inability deprived them the
opportunity to go to higher school (Armansyah; Kiki
Aryaningrum, 2017). Leaving them with no choice
but to work in the informal sector which requires no
special knowledge and skill (Williams, Shahid, &
Martínez, 2016). Apart from low education levels,
informal sector is dominated by female workers
(Dinkelman & Ranchhod, 2012). The education
level can affect the economy both at the macro and
micro level (Bambang, Sukmaniar, & Saputra,
2016), either of the case, the income of informal
sector workers remains affected (Bambang &
Saputra, 2015).
The college level such as D1 showed only 1.7
percent and 6.3 percent at the undergraduate level,
with the individuals working and study at the same
time to help ease the burden on parents in paying
tuition fees as well as helping their own parents'
businesses.
4.4 Informal Sector Female Worker
Income in Palembang City
The financial conditions of female workers in the
informal sector within the city of Palembang can be
seen from the level of income they generate in
helping improve the family economy. This is
illustrated in Figure 4 below.
Socio-Economic Characteristics of Women Workers in the Informal Sector in the City of Palembang
391

Figure 4: Conditions for Women's Workers' Income in the City's Informal Sector in Palembang
Fig. 4 explains the income of female workers in the
informal sector in the Palembang City at Rp. 0 to
Rp. 200,000. It dominates by 48 percent compared
to the others. However, female workers in the
informal sector of the city of Palembang already
earn more than Rp. 1,000,000 per day with 30.3 %
those earning between Rp. 200,000 - Rp. 400,000.
Also, there those who earn between Rp.400, 000 -
Rp. 600,000, representing 11.3%. The other income
class was between Rp.600,000 - 800,000
representing 4% and Rp. 800,000 - Rp. 1,000,000
being 3%.
Based on this data, most of the income of
informal sector female workers is relatively low,
evidenced by Informant I_Su-04 words "My income
is averagely Rp. 20,000 per day. In a month I earn
only Rp. 600,000”. Low income is a common
feature among women working in the informal
sector (de Groot, Mohlakoana, Knox, & Bressers,
2017). The same statement was similar that
expressed by Lehmann & Pignatti, (2018) that
informal sector workers are have income below the
required minimum wage. This condition usually
occurs, owing bto the fact that women in the
informal sector have low levels of education
(Wulantari & Armansyah, 2018).
5 CONCLUSION
The socio-economic characteristics of informal
sector female workers within the city of Palembang
can be assessed based on such variables as age,
marital status, education and income. On the basis of
age, informal sector female workers in the city is
dominated by women between the ages of 25-29
years old. Most of the women in the sector are
married with a good number having high school
education. Nevertheless, the income generated by
informal sector female workers in the city of
Palembang is quite low.
ACKNOWLEDGEMENTS
The research team would like to thank
Kemenristek Dikti for funding the implementation
of the study. We are also grateful to fellow lecturers
at the PGRI University of Palembang, lecturers of
Sriwijaya University, informal sector female
workers in Palembang City, agencies that offered
support to ensure that this research is carried out
optimally.
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