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

Author

Listed:
  • 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.

Suggested Citation

  • Armida Alisjahbana & Chris Manning, 2007. "Trends and Constraints Associated with Labor Faced by Non-Farm Enterprises," Working Papers in Economics and Development Studies (WoPEDS) 200711, Department of Economics, Padjadjaran University, revised Oct 2007.
    • Handle: RePEc:unp:wpaper:200711
    as

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    File URL: http://lp3e.fe.unpad.ac.id/wopeds/200711.pdf
    File Function: First version, 2007
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    References listed on IDEAS

    as
    1. Junior Davis, 2005. "The rural non-farm economy, Livelihoods and their," Development and Comp Systems 0510016, University Library of Munich, Germany.
    2. 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.
    3. 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, September.
    4. Abusaleh Shariff & Peter Lanjouw, 2002. "Rural Non-Farm Employment in India: Access, Income and Poverty Impact," NCAER Working Papers 81, National Council of Applied Economic Research.
    5. Islam, Nurul, 1997. "The nonfarm sector and rural development," 2020 vision briefs 47, International Food Policy Research Institute (IFPRI).
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Alia El Mahdi & Ali Rashed, 2007. "The Changing Economic Environment and the Development of the Micro and Small Enterprises in Egypt 2006," Working Papers 706, Economic Research Forum, revised 01 Jan 2007.

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    More about this item

    Keywords

    labor market constraints; non farm enterprises; Indonesia;
    All these keywords.

    JEL classification:

    • J0 - Labor and Demographic Economics - - General
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J7 - Labor and Demographic Economics - - Labor Discrimination

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