THE IMPACT OF LABOR MIGRATION ON EMPLOYMENT OPPORTUNITIES IN JAVA ISLAND

Abstract

This study examines the impact of labor migration on employment opportunities on the island of Java, Indonesia, using data from Survei Angkatan Kerja Nasional (SAKERNAS) August 2022. This study aims to compare the characteristics of migrant and non-migrant workers, identify factors influencing migration decisions, and analyze the impact of migration on labor market outcomes. A quantitative approach was employed using the Propensity Score Matching (PSM) method to reduce selection bias and obtain more accurate causal estimates. The results indicate that migrants generally possess better human capital, including higher educational attainment, work experience, and participation in job training, and tend to be younger than non-migrants. Individual characteristics were found to significantly influence migration decisions. However, the findings consistently show that migration has a negative and significant impact on employment opportunities. Migrants are less likely to be employed than non-migrants with similar characteristics, reflecting intense competition in the labor market as well as structural constraints in urban areas. This study highlights a paradox in which better human capital does not always guarantee better employment outcomes and offers important implications for labor market policy and regional development.