The Impact of the COVID-19 Pandemic on Labor Market Outcomes Across Educational Groups in Indonesia
Omar Arrazy Abdul Jabbar Natadisastra, Eny Sulistyaningrum, S.E., M.A., Ph.D.
2026 | Skripsi | ILMU EKONOMI
The COVID-19 pandemic generated unprecedented disruptions to labor markets worldwide, yet existing evidence for Indonesia has largely treated the shock as nationally homogeneous and focused on short-term effects. This study examines how regional variation in COVID-19 intensity affected labor market outcomes across educational groups in Indonesia and how these effects evolved over time. Using nationally representative data from the August rounds of SAKERNAS (2019, 2020, 2021, and 2023), comprising over 2.7 million observations, the analysis employs a multi-period Difference-in-Differences method to differentiate between the common national shock and an additional causal regional intensity effect. Treatment is defined at the regency level based on confirmed COVID-19 cases per capita.
The results reveal three main findings. First, while the pandemic generated a large national shock that reduced labor market outcomes, regional COVID-19 intensity further amplified income and working-hour losses in high-intensity regions, with effects persisting into 2023. Second, impacts differed by educational attainment, as higher-educated workers experienced smaller income losses and faster recovery, whereas secondary-educated workers were more vulnerable. Third, beyond education level, specialization may also shape exposure, with vocational graduates facing larger employment losses than general high school graduates and natural science graduates exhibiting stronger region-specific intensive-margin adjustments.
Overall, the findings show that both educational attainment and regional intensity shaped labor market resilience in Indonesia. By distinguishing between national and regional shocks and documenting heterogeneous effects across education levels, this study contributes to a more comprehensive understanding of how COVID-19 affected labor markets in Indonesia.
Kata Kunci : COVID-19, Labor Market Outcomes, Education