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Digital inclusion and labor market outcomes for persons with disabilities in Indonesia: a comparative 3SLS study of entrepreneurial and non-entrepreneurial pathways
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Digital inclusion and labor market outcomes for persons with disabilities in Indonesia: a comparative 3SLS study of entrepreneurial and non-entrepreneurial pathways
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Journal Article
Digital inclusion and labor market outcomes for persons with disabilities in Indonesia: a comparative 3SLS study of entrepreneurial and non-entrepreneurial pathways
2025
Overview
This study examines the economic potential of persons with disabilities (PWDs) in Indonesia using data from the 2023 National Labor Force Survey (Sakernas). A Three-Stage Least Squares (3SLS) analysis of 18,252 entrepreneurs and 6,375 non-entrepreneurs shows that education, digital access, and internet use consistently improve income and productivity. Training without digital integration reduces entrepreneurs' productivity (−0.417), while digital-based training increases entrepreneurs' income (0.246) and productivity (0.382), and also raises non-entrepreneurs' income (0.099). Social participation affects entrepreneurs' income and non-entrepreneurs' productivity; work experience slightly increases income for non-entrepreneurs, and urban location increases income but not productivity. These findings emphasize the importance of inclusive education, digital-integrated training, and tailored technology access to improve PWDs' labor market outcomes, with entrepreneurs benefiting most from digital training, while wage-employed individuals gain more from social and institutional support.
This study highlights how digital inclusion, education, and technology-based training influence the income and productivity of persons with disabilities (PWDs) in Indonesia. Entrepreneurs gain the most from digital-integrated training, while wage-employed workers benefit more from social participation and institutional support. These findings guide inclusive labor policies and provide lessons for other developing countries.
Publisher
Cogent,Taylor & Francis Group
