This paper investigates the short- and long-run Indonesian regional labourmarket integration using Johansen's system approach. The authors have tested for a number of cointegrating relationships and common trends among West-Java, East-Java, Central-Java and Jakarta, wage rates, and for the validity of the relationships between these wages implied by perfect market integration. The auhtors have then analysed an error correction model incorporating long-run equilibrium relationships and short-run dynamics.
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Paper provided by La Trobe - Department of Economics in its series Papers with number
98.17.
Find related papers by JEL classification: O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure