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. 2021;64(3):641-661.
doi: 10.1007/s41027-021-00333-x. Epub 2021 Aug 24.

Impacts and Strategies Behind COVID-19-Induced Economic Crisis: Evidence from Informal Economy

Agus Joko Pitoyo  1   2 , Bagas Aditya  2 , Ikhwan Amri  2 , Akbar Abdul Rokhim  2
Affiliations

Impacts and Strategies Behind COVID-19-Induced Economic Crisis: Evidence from Informal Economy

Agus Joko Pitoyo et al. Indian J Labour Econ. 2021.

Abstract

The COVID-19 pandemic has put pressure on the informal sector, especially in developing countries. Regarding the case study found in Yogyakarta Special Region (Indonesia), this research focuses on workers in the informal sector with the following objectives: (1) to assess the impacts of COVID-19 pandemic on informal workers' conditions, (2) to identify their strategies for surviving the crisis, and (3) to analyze the existing social safety net to support their livelihood. This study surveyed 218 respondents who worked in the informal, non-agricultural sector. The data were analyzed using descriptive statistical techniques. The results confirmed that most respondents underwent a decrease in working hours and incomes. In general, they have particular coping mechanisms to survive. The results also found that most respondents had high hopes for social assistance to stabilize their livelihood. Several government programs had been issued, either by improving policies before the pandemic or by creating new ones. However, there were many barriers and challenges to implementing them so that some recommendations had been suggested in this study to help the informal workers to become more resilient.

Keywords: COVID-19; Economic crisis; Indonesia; Informal economy.

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Conflict of interest statement

Conflict of interestThe authors confirm this research is original and there is no conflict of interest for this research.

Figures

Fig. 1
Fig. 1
Location of study area and distribution of COVID-19 cases as of July 31, 2020. Source Google Earth and Health Department of DIY
Fig. 2
Fig. 2
Number of workers aged 15 years and over by main occupation status in DIY. Source Statistical Yearbook of DIY 2015–2019
Fig. 3
Fig. 3
Alluvial plot of changes in working hours and income
Fig. 4
Fig. 4
Strategies done by informal workers to survive during the COVID-19 pandemic
Fig. 5
Fig. 5
Classification of informal workers’ livelihood strategies
Fig. 6
Fig. 6
Alluvial plot of need for and access to social assistance
See this image and copyright information in PMC

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