Natural Disasters and Women Entrepreneurs During the Covid-19 Pandemic in Indonesia

Abstract

The Covid-19 Pandemic is affecting different social groups. One of them is a woman. To help save the family's economy, women try to increase their income through entrepreneurship. However, Indonesia was also surprised by the number of occurrences of natural disasters in various regions. This study aims to examine how the impact of natural disasters that occur with disaster risk on the participation of women entrepreneurs. Simultaneously, this is exacerbated by the Covid-19 Pandemic which has an impact on the state of women entrepreneurs. The method used is binary logistic regression followed by the Heckman model for income analysis. Using the Disaster Risk Index data from BNPB and the 2020 National Labor Force Survey (Sakernas) data, this study found that natural disasters encourage the participation of women entrepreneurs and cause income to decline due to natural disasters and the Covid-19 Pandemic. Moreover, internet use has helped women entrepreneurs increase their income in post-disaster conditions and the Covid-19 Pandemic in Indonesia.

The Analysis of Natural Disaster Risk Impact on Labor Market Outcomes: Does It Lead to Middle-Class Workers Decrease?

“…In addition, if the interrelationship between input and output in one area is very large, disruption of one company's production process will have a big impact on other companies, and the negative impacts will accumulate and cause many community groups to be affected. This sets up a vicious cycle that lowers society's purchasing power, the economy's aggregate demand, the need for labor, and ultimately leads to higher unemployment or a shift to the unorganized sector (Kirchberger, 2017;Mendoza & Jara, 2020;Asrofi et al, 2023).…”