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Reducing Unemployment in Indonesia: Results from a Growth-Employment Elasticity Model

Author

Listed:
  • Daniel Suryadarma
  • Asep Suryahadi
  • Sudarno Sumarto

Abstract

Most of the unemployed in Indonesia are young and inexperienced, still live with their parents, and have at least 12 years of education. Starting with the premise that efforts to reduce unemployment should take into account the characteristics of the unemployed, we develop a model to look at the impact of different sectors and locations of economic growth on urban, rural, and national employment using a provincial level panel dataset. We find that increasing employment in rural and urban areas indeed requires different strategies. Services growth has the highest elasticity of employment in urban areas, while agriculture growth is still the best avenue to increase rural employment.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Daniel Suryadarma & Asep Suryahadi & Sudarno Sumarto, "undated". "Reducing Unemployment in Indonesia: Results from a Growth-Employment Elasticity Model," Working Papers 350, Publications Department.
    • Handle: RePEc:agg:wpaper:350
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    File URL: https://smeru.or.id/sites/default/files/publication/reducingunemployment.pdf
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    Citations

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    Cited by:

    1. Mohammad Zulfan Tadjoeddin, 2016. "Earnings, productivity and inequality in Indonesia," The Economic and Labour Relations Review, , vol. 27(2), pages 248-271, June.
    2. Margherita Comola & Luiz de Mello, 2013. "Salaried employment and earnings in Indonesia: new evidence on the selection bias," Applied Economics, Taylor & Francis Journals, vol. 45(19), pages 2808-2816, July.

    More about this item

    Keywords

    unemployment; growth elasticity; profile; Indonesia.;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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