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Import competition and local labor markets: the case of Indonesia

Author

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  • Fina Sri Agustina

    (Department of Economics, Universitas Indonesia, Jakarta, Indonesia)

Abstract

This paper analyzes the effects of import competition on Indonesian local labor markets in term of manufacturing employment share, non-manufacturing employment share, unemployment rate, and wages. A rapid increase in globalization has caused many countries including Indonesia experiences a significant increase in imports, which leads to tougher import competition. Using data of imports from 430 districts in Indonesia in the period of 2007-2013, we find that import competition has negatively affected manufacturing employment share, non-manufacturing employment share, and wages. It also increases unemployment. Besides, the highest impact is mainly driven by imports of consumption goods.

Suggested Citation

  • Fina Sri Agustina, 2018. "Import competition and local labor markets: the case of Indonesia," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 10(2), pages 177-186, Oktober.
    • Handle: RePEc:uii:journl:v:10:y:2018:i:2:p:177-186
    DOI: 10.20885/ejem.vol10.iss2.art6
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    References listed on IDEAS

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    More about this item

    Keywords

    import competition; local labor market; Indonesia;
    All these keywords.

    JEL classification:

    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General

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