Middle-class millennials in Indonesia: Concept, measurement, and determinants

In Indonesia, millennials and the middle class are among the most discussed topics of the past decade. On the one hand, as the largest demographic in Indonesia, millennials play a crucial role in the economy. Moreover, in terms of the workforce, they have reached the productive age. On the other hand, the size of the middle class is important because it can be a trigger for economic growth. Thus, ensuring that millennial households are in the middle class will spur economic growth. For this reason, this study will examine the determinants of middle-class households. The study uses a logit model and divides the research object into three cross-generations, namely Millennials, Gen X, and Baby Boomers. Hence, we can ensure the proper estimation and compare the determinants in each generation. The results indicated that the main determinants for millennial households to stay in the middle class are as follows: (i) education (must at least have completed high school education), (ii) employment (must have a full-time job in a secondary or tertiary business field or have a status as an entrepreneur or a formal employee), and (iii) access to amenities and services (must have access to sanitation, internet, and finances). Additonally, the results demonstrated that there are differences in the determinants between millennials and their predecessors, which will be discussed further in this paper.