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Does Industrialization = "Development"? The Effects of Industrialization on School Enrollment and Youth Employment in Indonesia

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Author Info
Maya Federman (Pitzer College)
David Levine (Haas School of Business, UC Berkeley)

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Abstract

This study examines the relationship between rising manufacturing employment and school enrollment in Indonesia from 1985 to 1995, a time of rapid industrialization. In comparison with cross- national studies, this study has a larger sample size of regions, defines data more consistently, and conducts better checks for causality and specification. Overall, enrollment is slightly higher and youth labor force participation slightly lower in regions with more manufacturing. The causal links between manufacturing and enrollments remain unclear. At the household level, employment of adult females in manufacturing is associated with lower enrollment, higher labor force participation, and more household responsibilities for female youth.

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Publisher Info
Paper provided by Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley in its series Center for International and Development Economics Research, Working Paper Series with number 1048.

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Date of creation: 15 Jun 2003
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Handle: RePEc:cdl:ciders:1048

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Keywords: education; industrialization; child labor; Indonesia;

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  4. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-51, April. [Downloadable!] (restricted)
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  5. Feenstra, Robert C & Hanson, Gordon H, 1996. "Globalization, Outsourcing, and Wage Inequality," American Economic Review, American Economic Association, vol. 86(2), pages 240-45, May. [Downloadable!] (restricted)
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  6. Becker, Gary S & Tomes, Nigel, 1979. "An Equilibrium Theory of the Distribution of Income and Intergenerational Mobility," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1153-89, December. [Downloadable!] (restricted)
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  10. Edward Miguel & Paul Gertler & David Levine, 2004. "Did Industrialization Destroy Social Capital in Indonesia?," Development and Comp Systems 0407006, EconWPA. [Downloadable!]
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