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Labor Market Transitions of Men and Women During an Economic Crisis: Evidence from Indonesia

Author

Listed:
  • Thomas, D.
  • Beegle, K.
  • Frankenberg, E.

Abstract

Indonesia is in the midst of a major financial, economic and political crisis. The immediate effects of the crisis on labor market outcomes are examined drawing on two rounds of the Indonesia Family Life Survey (IFLS), a longitudinal household survey collected in 1997 and 1998. Dire predictions made in early 1998 of rampant unemployment were, simply put, wrong. Employment remained remarkably stable. The drama of the crisis is reflected in the collapse of real hourly earnings, which declined by around 40% during the first year of the crisis. However, stability in aggregate employment masks considerable churning in the labor market and a substantial change in the structure of employment in Indonesia. While many males left the labor force, about the same number entered the labor force; many female workers exited the work force but even more entered, often working in their own or the family business. Among those who remained employed, there was also a good deal of shifting between sectors of the economy. Some of that turnover reflects shifts in the relative attractiveness of different sectors.

Suggested Citation

  • Thomas, D. & Beegle, K. & Frankenberg, E., 2000. "Labor Market Transitions of Men and Women During an Economic Crisis: Evidence from Indonesia," Papers 00-11, RAND - Labor and Population Program.
  • Handle: RePEc:fth:randlp:00-11
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    Citations

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    Cited by:

    1. Raj Chetty & Adam Looney, 2007. "Income Risk and the Benefits of Social Insurance: Evidence from Indonesia and the United States," NBER Chapters,in: Fiscal Policy and Management in East Asia, NBER-EASE, Volume 16, pages 99-121 National Bureau of Economic Research, Inc.
    2. David Cook & Hiromi Nosaka, 2006. "Dual labor markets and business cycles," Proceedings, Federal Reserve Bank of San Francisco, issue Jun.
    3. Chetty, Raj & Looney, Adam, 2006. "Consumption smoothing and the welfare consequences of social insurance in developing economies," Journal of Public Economics, Elsevier, vol. 90(12), pages 2351-2356, December.

    More about this item

    Keywords

    FAMILY ; LABOUR MARKET ; WOMEN;

    JEL classification:

    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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