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Labor Market Transitions of Men and Women During an Economic Crisis: Evidence from Indonesia

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Author Info

  • Thomas, D.
  • Beegle, K.
  • Frankenberg, E.

Abstract

Indonesia is in the midst of a major financial, economic and political crisis. The immediate effects of the crisis on labor market outcomes are examined drawing on two rounds of the Indonesia Family Life Survey (IFLS), a longitudinal household survey collected in 1997 and 1998. Dire predictions made in early 1998 of rampant unemployment were, simply put, wrong. Employment remained remarkably stable. The drama of the crisis is reflected in the collapse of real hourly earnings, which declined by around 40% during the first year of the crisis. However, stability in aggregate employment masks considerable churning in the labor market and a substantial change in the structure of employment in Indonesia. While many males left the labor force, about the same number entered the labor force; many female workers exited the work force but even more entered, often working in their own or the family business. Among those who remained employed, there was also a good deal of shifting between sectors of the economy. Some of that turnover reflects shifts in the relative attractiveness of different sectors.

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Bibliographic Info

Paper provided by RAND - Labor and Population Program in its series Papers with number 00-11.

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Length: 27 pages
Date of creation: 2000
Date of revision:
Handle: RePEc:fth:randlp:00-11

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Postal: RAND, Labor and Population Program, 1700 Main Street, P.O. Box 2138 Santa Monica, CA 90407-2138.
Phone: (310) 393-0411, x7359
Fax: 310-393-4818
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Web page: http://www.rand.org/labor.html
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Related research

Keywords: FAMILY ; LABOUR MARKET ; WOMEN;

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Cited by:
  1. Raj Chetty & Adam Looney, 2007. "Income Risk and the Benefits of Social Insurance: Evidence from Indonesia and the United States," NBER Chapters, in: Fiscal Policy and Management in East Asia, NBER-EASE, Volume 16, pages 99-121 National Bureau of Economic Research, Inc.
  2. Sonia Bhalotra & Marcela Umaña-Aponte, 2010. "The Dynamics of Women’s Labour Supply in Developing Countries," The Centre for Market and Public Organisation 10/235, Department of Economics, University of Bristol, UK.
  3. Raj Chetty & Adam Looney, 2005. "Consumption Smoothing and the Welfare Consequences of Social Insurance in Developing Economies," NBER Working Papers 11709, National Bureau of Economic Research, Inc.
  4. David Cook & Hiromi Nosaka, 2005. "Dual labor markets and business cycles," Working Paper Series 2006-36, Federal Reserve Bank of San Francisco.

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