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Trends and Constraints Associated with Labor Faced by Non-Farm Enterprises

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Author Info

  • Armida Alisjahbana

    ()
    (Department of Economics, Padjadjaran University)

  • Chris Manning

Abstract

This paper examines trends in non-farm employment and associated labor market constraints that have hindered the growth of non-farm employment (NFE) since the economic crisis in 1997-98. We observed, among others, apparent negative correlation between employment growth in agriculture and NFE, the high rate of urban employment growth, which was more than double the rate in rural areas, and the slow growth of formal sector employment – in both rural and urban areas and in farm and in non-farm sectors. Some policy implications are discussed.

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File URL: http://lp3e.fe.unpad.ac.id/wopeds/200711.pdf
File Function: First version, 2007
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Bibliographic Info

Paper provided by Department of Economics, Padjadjaran University in its series Working Papers in Economics and Development Studies (WoPEDS) with number 200711.

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Length: 36 pages
Date of creation: Oct 2007
Date of revision: Oct 2007
Handle: RePEc:unp:wpaper:200711

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Keywords: labor market constraints; non farm enterprises; Indonesia;

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  1. Asep Suryahadi & Sudarno Sumarto & Lant Pritchett, 2003. "Evolution of Poverty During the Crisis in Indonesia," Asian Economic Journal, East Asian Economic Association, vol. 17(3), pages 221-241, 09.
  2. Junior Davis, 2005. "The rural non-farm economy, Livelihoods and their," Development and Comp Systems 0510016, EconWPA.
  3. Chris Manning, 2000. "Labour Market Adjustment to Indonesia's Economic Crisis: Context, Trends and Implications," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 36(1), pages 105-136.
  4. Islam, Nurul, 1997. "The nonfarm sector and rural development," 2020 vision briefs 47, International Food Policy Research Institute (IFPRI).
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