Naidoo, DarianPackard, TrumanAuwalin, Ilmiawan2015-12-182015-12-182015-11https://hdl.handle.net/10986/23449This paper investigates the occupational mobility and job quality of young people in Indonesia and relates this to the concept of “scarring.” The concept of labor market scarring in this paper is the occurrence of low or zero returns to certain types of work (for example, self-employment). Scarring is expected to occur whenever an individual spends periods working in occupations in which their human capital is either stagnant or deteriorating. Fixed effects estimations using panel data from the Indonesian Family Life Survey reveal that a period in self-employment is associated with negative returns for youth (about 3 to 4 percent per year penalty), but not for older adults. In addition, there are clear patterns of persistence in self-employment over time with few individuals progressing from petty self-employment to businesses with permanent workers.en-USCC BY 3.0 IGOWAGE IMPACTSALARIED EMPLOYMENTJOBSEMPLOYMENTPERMANENT WORKERUNEMPLOYMENT RATESFAMILY LABORWAGE EMPLOYMENTWORK EXPERIENCEINFORMAL EMPLOYMENTRETIREMENTINFORMAL SECTORYOUTH EMPLOYMENTEMPLOYMENT STATUSJOB MATCHLABOR FORCEHEALTH INSURANCEAGGREGATE UNEMPLOYMENTJOBUNEMPLOYMENT SPELLSLONG TERM WAGELABOR ECONOMICSPRIVATE SECTORPAYING JOBSPUBLIC SECTOR EMPLOYMENTPERSISTENT UNEMPLOYMENTCASUAL WORKERSTEMPORARY WORKERSCONTINGENT WORKERSEMPLOYMENT OUTCOMESWAGE GROWTHLABOR MARKET EXPERIENCEWAGE IMPACTJOB CREATION SCHEMESJOB SEEKERSWORK EXPERIENCEUNEMPLOYMENT DURATIONTEMPORARY WORKSMALL BUSINESSJOB CREATION SCHEMESLABOUR MARKET INSTITUTIONSSELF‐ EMPLOYMENTPERMANENT EMPLOYMENTHUMAN RESOURCEJOB MATCHLABOR MARKETAGGREGATE UNEMPLOYMENTUNEMPLOYED WORKERSPRIVATE SECTOR WORKERSHUMAN RESOURCE PRACTICESEDUCATIONAL ATTAINMENTDISPLACEMENTLONG TERM WAGEEDUCATIONAL ATTAINMENTWORKERWAGE RATESUNEMPLOYMENT SPELLUNEMPLOYED YOUTHADULT MALESLABOR PRODUCTIVITYUNEMPLOYEDOLDER WORKERSFULL TIME JOBJOB TRAININGHUMAN RESOURCE PRACTICESWAGE SUBSIDIESEARNINGS LOSSESSELF‐EMPLOYEDUNEMPLOYMENT RATESJOB STATUSNATURAL RATE OF UNEMPLOYMENTJOB TRAININGLABORLABOR PRODUCTIVITYHIGH WAGESJOB SEARCHJOB SEPARATIONWAGE SECTOREXPECTED WAGESPERMANENT WORKERSUNEMPLOYMENTLABOR MARKETHUMAN CAPITALCONTINGENT WORKAGGREGATE UNEMPLOYMENT RATEWORKERSDISPLACED WORKERSYOUTH EMPLOYMENTUNEMPLOYMENT RATETEMPORARY WORKUNEMPLOYMENT SPELLSJOB STATUSJOB SEEKERJOB CREATIONLABOR MARKET SEGMENTATIONLABOR MARKET EXPERIENCESWAGE RATESCASUAL WORKERSLABOR CONTRACTFAMILY LABORLABOR MARKET CHARACTERISTICSWAGE SUBSIDIESUNEMPLOYMENT DURATIONPAYING JOBPAYING JOBOCCUPATIONSJOB SEARCHLABOR MARKET EXPERIENCESOLDER WORKERSLABOUR MARKETOCCUPATIONEMPLOYMENT SPELLSSAFETY NETSELF‐ EMPLOYEDEMPLOYMENT STATUSPERMANENT EMPLOYMENTLABOR MARKET CHARACTERISTICSINFORMAL SECTORLABOR MARKET OUTCOMESJOB CREATIONLABOR RELATIONSPRIVATE SECTORUNEMPLOYMENT EXPERIENCEHOUSEHOLD CHARACTERISTICSLABOR MARKETSEARNINGWAGE GROWTHLABOR FORCEOCCUPATIONAL MOBILITYJOB SEPARATIONNATURAL RATE OF UNEMPLOYMENTWAGE SECTORPRIVATE SECTOR JOBSHUMAN CAPITALCONTINGENT WORKSALARIED EMPLOYMENTPERMANENT WORKERSPUBLIC SECTOR EMPLOYMENTCOLLEGE GRADUATECASUAL WORKERAGGREGATE UNEMPLOYMENT RATELABOUR MARKET OUTCOMESYOUTH UNEMPLOYMENTPRIVATE SECTOR EMPLOYEEEXPECTED WAGESUNEMPLOYMENT SPELLPAYING JOBSHUMAN RESOURCEWORKING CONDITIONSUNEMPLOYED INDIVIDUALHUMAN RESOURCESEMPLOYMENT PROBABILITYLABOR MARKET OUTCOMESTEMPORARY WORKERSCONTINGENT WORKERSEMPLOYEELABOR MARKET SEGMENTATIONWAGE DIFFERENTIALSWAGE EFFECTSPRIVATE SECTOR WORKERSINFORMAL EMPLOYMENTHOUSEHOLD CHARACTERISTICSJOB SECURITYYOUTH UNEMPLOYMENTUNEMPLOYED YOUTHLABOUREMPLOYMENT PROBABILITYLABOR MARKETSEMPLOYMENT PROSPECTSSELF‐EMPLOYMENTWAGE EMPLOYMENTJOB SEEKERJOB DISPLACEMENTEMPLOYEESWorking PaperWorld Bank10.1596/1813-9450-7484