REGIONAL LABOUR MARKETS DURING DEREGULATION IN INDONESIA Have the Outer Islands Been Left Behind?
Indonesian labour markets have undergone a major transformation over the past 30 years, especially on Java since liberalisation gathered pace in the mid 1980s. The paper focuses on regional dimensions of these changes. In contrast to emerging interregional disparities in some other countries, it finds that employment structure has changed markedly and real wages risen in most Outer Island provinces since 1987. While wage growth has been more rapid in Java-Bali, labour in the Outer Island provinces has enjoyed large gains from rapid economic growth during the deregulation period. Among Outer Island provinces, Northern Sumatra and the poorer Eastern Island provinces have experienced substantial growth, while the Kalimantan provinces have lagged in manufacturing employment and wages. Labour market outcomes have also been less favourable in land abundant provinces which received large numbers of assisted migrants during the earlier oil boom period. It is concluded that export-led industrialisation concentrated in Java-Bali has contributed to labour market transformation and income growth outside Java-Bali. In addition, improvements in wages and the shift of labour outside agriculture have been supported by continuing government support for infrastructure and human resource development in the Outer Island provinces.
|Date of creation:||1996|
|Contact details of provider:|| Postal: Crawford Building, Lennox Crossing, Building #132, Canberra ACT 2601|
Phone: +61 2 6125 4705
Fax: +61 2 6125 5448
Web page: https://crawford.anu.edu.au/acde/publications/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jian, Tianlun & Sachs, Jeffrey D. & Warner, Andrew M., 1996.
"Trends in regional inequality in China,"
China Economic Review,
Elsevier, vol. 7(1), pages 1-21.
- Jian, T & Sachs, J-D & Warner, A-M, 1995. "Trends in Regional Inequality in China," Papers 518, Harvard - Institute for International Development.
- Tianlun Jian & Jeffrey D. Sachs & Andrew M. Warner, 1996. "Trends in Regional Inequality in China," NBER Working Papers 5412, National Bureau of Economic Research, Inc.
- Hill, Hal, 1983. "Choice of Technique in the Indonesian Weaving Industry," Economic Development and Cultural Change, University of Chicago Press, vol. 31(2), pages 337-353, January. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:pas:papers:1996-12. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sandra Zec)
If references are entirely missing, you can add them using this form.