International economic integration and labor markets : the case of Indonesia
Date
2001
Authors
Contributor
Advisor
Department
Instructor
Depositor
Speaker
Researcher
Consultant
Interviewer
Narrator
Transcriber
Annotator
Journal Title
Journal ISSN
Volume Title
Publisher
Honolulu: East-West Center
Volume
Number/Issue
Starting Page
Ending Page
Alternative Title
Abstract
Indonesia changed its development strategy from an inward-looking import substitution to an outward-looking export orientation in the mid 1980s. Deregulation measures introduced during this period have made the Indonesian economy become more integrated with the world economy. This study examines the impact of a more globally integrated Indonesian economy on its labor market. The findings indicate that increasing economic openness is associated with growing outputs, which has resulted in an expansion of employment and growing real wages of both skilled and unskilled workers. Employment of skilled workers, however, has grown faster than that of unskilled workers. On the other hand, unskilled wages have grown faster than skilled wages, resulting in declining wage inequality. This is consistent with the theoretical prediction from the Heckscher-Ohlin-Samuelson model. However, this pattern of change in relative employment and wages is also consistent with the prevailing long-term trend of a growing relative supply of skilled workers.
Description
For more about the East-West Center, see http://www.eastwestcenter.org/
Keywords
International economic integration, Labor market - Indonesia
Citation
Extent
24 pages
Format
Geographic Location
Time Period
Related To
Related To (URI)
Table of Contents
Rights
Rights Holder
Local Contexts
Collections
Email libraryada-l@lists.hawaii.edu if you need this content in ADA-compliant format.