IDEAS home Printed from https://ideas.repec.org/p/unp/sdgspp/201609.html
   My bibliography  Save this paper

Labor market development in Indonesia Has it been for all?

Author

Listed:
  • Muhamad Purnagunawan

    (Department of Economics, Padjadjaran University)

  • Victor Pirmana

    (Department of Economics, Padjadjaran University)

Abstract

This paper look at the long-run evolution of various labor market indicators in Indonesia over the period of 1992 to 2012 using the National Socioeconomic Survey (SUSENAS) data to describe the development before and after the reform era. Four indicators are used in this study to measure the labor market performance, which are formality rate,working poor rate, not in employment and education rate and child labor rate. Those indicators are calculated by per capita expenditure quintile to capture the equity aspect of labor market development. In addition, we also analyze in more detail the labor market condition in urban andrural separately. We found that while in general there have been some improvement during the period,there is a widening gap in some of the indicators especially in the formality rate betweenthe poor and other income class over that particular period that need special attention. Highincrease in the minimum wages and more rigid labor regulation in the beginning of decentralization era and also economic crisis might explain part of the widening gap. Furthermore, there are also serious and persistence problem in the quality of jobs in Indonesia, where having a job is not ensuring people out of poverty.

Suggested Citation

  • Muhamad Purnagunawan & Victor Pirmana, 2016. "Labor market development in Indonesia Has it been for all?," UNPAD SDGs Working Paper Series 201609, Center for Sustainable Development Goals Studies, Universitas Padjadjaran, revised Jun 2016.
    • Handle: RePEc:unp:sdgspp:201609
    as

    Download full text from publisher

    File URL: http://sdgcenter.unpad.ac.id/paper/201609.pdf
    File Function: First version, 2016
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Agus Priyambada & Asep Suryahadi & Sudarno Sumarto, "undated". "What Happened to Child Labor in Indonesia during the Economic Crisis: The Trade-off between School and Work," Working Papers 360, Communications Section.
    2. Haryo Aswicahyono & Hal Hill & Dionisius Narjoko, 2010. "Industrialisation after a Deep Economic Crisis: Indonesia," Journal of Development Studies, Taylor & Francis Journals, vol. 46(6), pages 1084-1108.
    3. Jesse Darja & Daniel Suryadarma & Asep Suryahadi & Sudarno Sumarto, 2005. "What Happened to Village Infrastructure and Public Services During the Economic Crisis in Indonesia?," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 53, pages 119-145, August.
    4. Armida Alisjahbana & Chris Manning, 2002. "Survey of Recent Developments," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 38(3), pages 277-305.
    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. Dayang Haszelinna binti Abang Ali & G. Reza Arabsheibani, 2016. "Child Labour in Indonesia: Supply-Side Determinants," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 62, pages 162-179, December.
    2. Kharisma, Bayu, 2017. "Idiosyncratic Shocks, Child Labor and School Attendance in Indonesia," MPRA Paper 78887, University Library of Munich, Germany, revised 06 Apr 2017.
    3. Ross McLeod, 2003. "Towards improved monetary policy in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 39(3), pages 303-324.
    4. Sjöholm, Fredrik & Lipsey, Robert E. & Sun, Jing, 2010. "Foreign Ownership and Employment Growth in Indonesian Manufacturing," Working Paper Series 831, Research Institute of Industrial Economics.
    5. Nurina Merdikawati & Sarah Xue Dong, 2021. "Labour Regulation Shift and Labour Intensive Manufacturing," Departmental Working Papers 2021-06, The Australian National University, Arndt-Corden Department of Economics.
    6. Hadi Soesastro & Haryo Aswicahyono & Dionisius A. Narjoko, 2006. "Economic Reforms in Indonesia after the 1997/98 Economic Crisis," EABER Working Papers 21831, East Asian Bureau of Economic Research.
    7. Budy Resosudarmo & Daniel Suryadarma, 2011. "The Effect of Childhood Migration on Human Capital Accumulation: Evidence from Rural-Urban Migrants in Indonesia," Departmental Working Papers 2011-02, The Australian National University, Arndt-Corden Department of Economics.
    8. Arief Anshory Yusuf & Andy Sumner, 2017. "Multidimensional poverty in Indonesia: How inclusive has economic growth been?," Departmental Working Papers 2017-09, The Australian National University, Arndt-Corden Department of Economics.
    9. Budy P. Resosudarmo & Ani A Nawir & Ida Aju P. Resosudarmo & Nina L Subiman, 2012. "Forest Land Use Dynamics in Indonesia," Departmental Working Papers 2012-01, The Australian National University, Arndt-Corden Department of Economics.
    10. Fitriya & Abdul Basyith & Rabin Ibnu Zainal, 2020. "The Doubled-Edge Sword of Raising the Minimum Wage: The Case of Indonesia," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(12), pages 1453-1465.
    11. Aswicahyono, Haryo & Narjok, Dionisius, 2011. "Indonesian Industrialization," WIDER Working Paper Series 053, World Institute for Development Economic Research (UNU-WIDER).
    12. Daniel Suryadarma & Rima Prama Artha & Asep Suryahadi & Sudarno Sumarto, "undated". "A Reassessment of Inequality and Its Role in Poverty Reduction in Indonesia," Working Papers 364, Communications Section.
    13. J. Soedradjad Djiwandono, 2004. "Liquidity support to banks during Indonesia's financial crisis," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 40(1), pages 59-75.
    14. Hal Hill, 2018. "Asia's Third Giant: A Survey of the Indonesian Economy," The Economic Record, The Economic Society of Australia, vol. 94(307), pages 469-499, December.
    15. Julien Hanoteau & Virginie Vial, 2020. "Institutional quality, conforming and evasive entrepreneurship," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(1), pages 97-121, March.
    16. Michael T. Rock, 2003. "The Politics of Development Policy and Development Policy Reform in New Order Indonesia," William Davidson Institute Working Papers Series 2003-632, William Davidson Institute at the University of Michigan.
    17. repec:ilo:ilowps:295038 is not listed on IDEAS
    18. Prema-chandra Athukorala & Archanun Kohpaiboon, 2013. "Global Production Sharing, Trade Patterns and Industrialization in Southeast Asia," Departmental Working Papers 2013-18, The Australian National University, Arndt-Corden Department of Economics.
    19. Hal Hill, 2020. "Indonesian Living Standards over 50 Years: A Multidimensional Analysis," Asian Economic Journal, East Asian Economic Association, vol. 34(3), pages 249-274, September.
    20. Krishna, Vijesh V. & Pascual, Unai & Qaim, Matin, 2014. "Do emerging land markets promote forestland appropriation? Evidence from Indonesia," EFForTS Discussion Paper Series 7, University of Goettingen, Collaborative Research Centre 990 "EFForTS, Ecological and Socioeconomic Functions of Tropical Lowland Rainforest Transformation Systems (Sumatra, Indonesia)".
    21. Prema-Chandra Athukorala, 2006. "Post-crisis export performance: The Indonesian experience in regional perspective," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 42(2), pages 177-211.

    More about this item

    Keywords

    Employment; Formal Sector; Indonesia;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

    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:unp:sdgspp:201609. 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: Arief Anshory Yusuf (email available below). General contact details of provider: https://edirc.repec.org/data/sdgupid.html .

    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.