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Does Industrialization = "Development"? The Effects of Industrialization on School Enrollment and Youth Employment in Indonesia

  • Federman, Maya
  • Levine, David I.

This study examines the relationship between rising manufacturing employment and school enrollment in Indonesia from 1985 to 1995, a time of rapid industrialization. In comparison with cross- national studies, this study has a larger sample size of regions, defines data more consistently, and conducts better checks for causality and specification. Overall, enrollment is slightly higher and youth labor force participation slightly lower in regions with more manufacturing. The causal links between manufacturing and enrollments remain unclear. At the household level, employment of adult females in manufacturing is associated with lower enrollment, higher labor force participation, and more household responsibilities for female youth.

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Paper provided by Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley in its series Center for International and Development Economics Research, Working Paper Series with number qt3t10238h.

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Date of creation: 15 Jun 2003
Date of revision:
Handle: RePEc:cdl:ciders:qt3t10238h
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  1. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 1-76.
  2. Paul Gertler & John Molyneaux, 1994. "How economic development and family planning programs combined to reduce indonesian fertility," Demography, Springer, vol. 31(1), pages 33-63, February.
  3. Robert C. Feenstra & Gordon H. Hanson, 1996. "Globalization, Outsourcing, and Wage Inequality," NBER Working Papers 5424, National Bureau of Economic Research, Inc.
  4. J. Stiglitz, 1998. "More Instruments and Broader Goals: Moving toward the PostWashington Consensus," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 8.
  5. Esther Duflo, 2001. "Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment," American Economic Review, American Economic Association, vol. 91(4), pages 795-813, September.
  6. Easterly, William, 1999. "Life during growth : international evidence on quality of life and per capita income," Policy Research Working Paper Series 2110, The World Bank.
  7. Claudia Goldin & Lawrence F. Katz, 1998. "The Origins Of Technology-Skill Complementarity," The Quarterly Journal of Economics, MIT Press, vol. 113(3), pages 693-732, August.
  8. Richard H. Steckel & Roderick Floud, 1997. "Introduction to "Health and Welfare during Industrialization"," NBER Chapters, in: Health and Welfare during Industrialization, pages 1-16 National Bureau of Economic Research, Inc.
  9. Alan B. Krueger & Mikael Lindahl, 2000. "Education for Growth: Why and For Whom?," NBER Working Papers 7591, National Bureau of Economic Research, Inc.
  10. Richard H. Steckel & Roderick Floud, 1997. "Health and Welfare during Industrialization," NBER Books, National Bureau of Economic Research, Inc, number stec97-1, July.
  11. Miguel, Edward A. & Gertler, Paul & Levine, David I., 2003. "Did Industrialization Destroy Social Capital in Indonesia?," Center for International and Development Economics Research, Working Paper Series qt9kt2m860, Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley.
  12. Becker, Gary S & Tomes, Nigel, 1979. "An Equilibrium Theory of the Distribution of Income and Intergenerational Mobility," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1153-89, December.
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