Interregional Labor Migration and Its Role in Shaping Economic Growth: A Case Study of Casual Worker Migrants in Indonesia

Abstract

Purpose: This study analyzed the determinants and impacts of casual migrant workers that was conducted in East Java, which is known as one of highest economic growth area in Indonesia and experiencing a higher influx of migrants compared to migrants leaving the region.   Design/Methodology/Approach: This study employs the two-step heckman method. The sample consists of workers who engaged in interregional migration within East Java on 2015. The sample was selected based on characteristics that align with the research requirements, extracted from secondary data derived from the 2015 inter-census population survey. The data type used is cross-sectional data.   Findings: The research findings indicate that significant determinants of casual migrant workers are migrants of non-productive age, male migrants, migrants with non-bachelor's/diploma, unmarried migrants, migrants without family under 5 years old, migrants originating from predominantly wooden/board/earthen floors, migrants from higher minimum wage regions than the destination, non-metropolitan city migrants, and migrants from areas with a lower poverty rate than destination region, which are more likely to move and become migrants. The results for the significant impact of casual migrant workers on the economic sector are influenced by casual migrant workers originating from non-metropolitan city regions, which contribute the most to the destination region's GRDP.   Research, practical & social implications: This study formulates policy strategies that can be employed by government to enhance the quality of human resources and expand employment opportunities, particularly for casual migrant workers, as an endeavor to boost economic growth in the destination regions of migration.