IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2311.01787.html
   My bibliography  Save this paper

Labour Absorption In Manufacturing Industry In Indonesia: Anomalous And Regressive Phenomena

Author

Listed:
  • Tongam Sihol Nababan
  • Elvis Fresly Purba

Abstract

The manufacturing industry sector was expected to generate new employment opportunities and take on labour. Gradually, however, it emerged as a menace to the sustenance of its workers. According to the findings of this study, 24 manufacturing subsectors with ISIC 2 digits in Indonesia exhibited regressive and abnormal patterns in the period 2012-2020. This suggests that, to a great extent, labour absorption has been limited and, in some cases, even shown a decline. Anomalous occurrences were observed in three subsectors: ISIC 12 (tobacco products), ISIC 26 (computer, electronic and optical products), and ISIC 31 (furniture). In contrast, regressive phenomena were present in the remaining 21 ISIC subsectors. Furthermore, the manufacturing industry displayed a negative correlation between employment and efficiency index, demonstrating this anomalous and regressive phenomenon. This implies that as the efficiency index of the manufacturing industry increases, the index of labour absorption decreases

Suggested Citation

  • Tongam Sihol Nababan & Elvis Fresly Purba, 2023. "Labour Absorption In Manufacturing Industry In Indonesia: Anomalous And Regressive Phenomena," Papers 2311.01787, arXiv.org.
    • Handle: RePEc:arx:papers:2311.01787
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2311.01787
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Daron Acemoglu & Pascual Restrepo, 2019. "Automation and New Tasks: How Technology Displaces and Reinstates Labor," Journal of Economic Perspectives, American Economic Association, vol. 33(2), pages 3-30, Spring.
    2. Islam, Rizwanul, 2017. "Structural Transformation and Absorption of Surplus Labour," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 40(3-4), pages 105-136, Sep-Dec.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Genz, Sabrina & Schnabel, Claus, 2023. "Digitalization is not gender-neutral," Economics Letters, Elsevier, vol. 230(C).
    2. Barth, Erling & Davis, James C. & Freeman, Richard B. & McElheran, Kristina, 2023. "Twisting the demand curve: Digitalization and the older workforce," Journal of Econometrics, Elsevier, vol. 233(2), pages 443-467.
    3. Radu Vranceanu & Angela Sutan, 2023. "Should the firm or the employee pay for upskilling? A contract theory approach," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 197-207, January.
    4. Czarnitzki, Dirk & Fernández, Gastón P. & Rammer, Christian, 2023. "Artificial intelligence and firm-level productivity," Journal of Economic Behavior & Organization, Elsevier, vol. 211(C), pages 188-205.
    5. Juan F. Jimeno, 2019. "Fewer babies and more robots: economic growth in a new era of demographic and technological changes," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 10(2), pages 93-114, June.
    6. Fabio Montobbio & Jacopo Staccioli & Maria Enrica Virgillito & Marco Vivarelli, 2022. "The empirics of technology, employment and occupations: lessons learned and challenges ahead," DISCE - Quaderni del Dipartimento di Politica Economica dipe0028, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    7. Bárány, Zsófia L. & Siegel, Christian, 2020. "Biased technological change and employment reallocation," Labour Economics, Elsevier, vol. 67(C).
    8. Heyman, Fredrik & Olsson, Martin, 2022. "Long-Run Effects of Technological Change: The Impact of Automation and Robots on Intergenerational Mobility," Working Paper Series 1451, Research Institute of Industrial Economics, revised 29 Jun 2023.
    9. Armanda Cetrulo & Giovanni Dosi & Angelo Moro & Linnea Nelli & Maria Enrica Virgillito, 2023. "Automation, digitalization and decarbonization in the European automotive industry: a roadmap towards a just transition," LEM Papers Series 2023/36, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    10. Gartner, Hermann & Stüber, Heiko, 2019. "Strukturwandel am Arbeitsmarkt seit den 70er Jahren: Arbeitsplatzverluste werden durch neue Arbeitsplätze immer wieder ausgeglichen (Structural change on the labor market since the 70s : The destructi," IAB-Kurzbericht 201913, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    11. Lionel Fontagné & Ariell Reshef & Gianluca Santoni & Giulio Vannelli, 2024. "Automation, global value chains and functional specialization," Review of International Economics, Wiley Blackwell, vol. 32(2), pages 662-691, May.
    12. Janine Berg & Francis Green & Laura Nurski & David A Spencer, 2023. "Risks to job quality from digital technologies: Are industrial relations in Europe ready for the challenge?," European Journal of Industrial Relations, , vol. 29(4), pages 347-365, December.
    13. Gries, Thomas & Naudé, Wim, 2020. "Artificial Intelligence, Income Distribution and Economic Growth," IZA Discussion Papers 13606, Institute of Labor Economics (IZA).
    14. David Kunst, 2019. "Deskilling among Manufacturing Production Workers," Tinbergen Institute Discussion Papers 19-050/VI, Tinbergen Institute, revised 30 Dec 2020.
    15. Dilip Mookherjee & Debraj Ray, 2022. "Growth, Automation and the Long-Run Share of Labor," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 46, pages 1-26, October.
    16. Nicoletta Corrocher & Daniele Moschella & Jacopo Staccioli & Marco Vivarelli, 2023. "Innovation and the Labor Market: Theory, Evidence and Challenges," DISCE - Quaderni del Dipartimento di Politica Economica dipe0033, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    17. Lee Ohanian & Musa Orak & Shihan Shen, 2023. "Revisiting Capital-Skill Complementarity, Inequality, and Labor Share," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 51, pages 479-505, December.
    18. Lu, Jing & Xiao, Qinglan & Wang, Taoxuan, 2023. "Does the digital economy generate a gender dividend for female employment? Evidence from China," Telecommunications Policy, Elsevier, vol. 47(6).
    19. Montobbio, Fabio & Staccioli, Jacopo & Virgillito, Maria Enrica & Vivarelli, Marco, 2022. "Robots and the origin of their labour-saving impact," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    20. Brambilla, Irene & César, Andrés & Falcone, Guillermo & Gasparini, Leonardo, 2023. "The impact of robots in Latin America: Evidence from local labor markets," World Development, Elsevier, vol. 170(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2311.01787. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.