REGIONAL LABOUR MARKETS DURING DEREGULATION IN INDONESIA Have the Outer Islands Been Left Behind?
AbstractIndonesian labour markets have undergone a major transformation over the past 30 years, especially on Java since liberalisation gathered pace in the mid 1980s. The paper focuses on regional dimensions of these changes. In contrast to emerging interregional disparities in some other countries, it finds that employment structure has changed markedly and real wages risen in most Outer Island provinces since 1987. While wage growth has been more rapid in Java-Bali, labour in the Outer Island provinces has enjoyed large gains from rapid economic growth during the deregulation period. Among Outer Island provinces, Northern Sumatra and the poorer Eastern Island provinces have experienced substantial growth, while the Kalimantan provinces have lagged in manufacturing employment and wages. Labour market outcomes have also been less favourable in land abundant provinces which received large numbers of assisted migrants during the earlier oil boom period. It is concluded that export-led industrialisation concentrated in Java-Bali has contributed to labour market transformation and income growth outside Java-Bali. In addition, improvements in wages and the shift of labour outside agriculture have been supported by continuing government support for infrastructure and human resource development in the Outer Island provinces.
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Bibliographic InfoPaper provided by The Australian National University, Arndt-Corden Department of Economics in its series Departmental Working Papers with number 1996-12.
Length: 37 pages
Date of creation: 1996
Date of revision:
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Other versions of this item:
- Manning, Chris, 1997. "Regional labor markets during deregulation in Indonesia : have the Outer Islands been left behind?," Policy Research Working Paper Series 1728, The World Bank.
- Chris Manning, 1996. "Regional Labour Markets During Deregulation in Indonesia: Have the Outer Islands Been Left Behind?," Trade and Development 96/12, Australian National University, Department of Economics.
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- Tianlun Jian & Jeffrey D. Sachs & Andrew M. Warner, 1996. "Trends in Regional Inequality in China," NBER Working Papers 5412, National Bureau of Economic Research, Inc.
- Jian, Tianlun & Sachs, Jeffrey D. & Warner, Andrew M., 1996. "Trends in regional inequality in China," China Economic Review, Elsevier, vol. 7(1), pages 1-21.
- Hill, Hal, 1983. "Choice of Technique in the Indonesian Weaving Industry," Economic Development and Cultural Change, University of Chicago Press, vol. 31(2), pages 337-53, January.
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