Local Labor Markets Dynamics and Export Shocks: Theory and Evidence from Indonesia

Carlos Góes, Juan Segnana, Raymond Robertson and Gladys Lopez-Acevedo ()
Additional contact information
Juan Segnana: Tilburg University
Gladys Lopez-Acevedo: World Bank
Authors registered in the RePEc Author Service: Gladys Lopez-Acevedo

No 16473, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We study the dynamic effects of export exposure over local labor markets in Indonesia. We develop an empirical strategy to instrument exposure to exports using exposure to foreign demand shocks and validate it showing that the labor market responses are consistent with those expected from demand shocks in a spatial model. Export shocks unambiguously increase employment in Indonesia. While effects on average income per employee are ambiguous due to industry- and sectoral-compositional effects, our estimates of district-level welfare suggest that export shocks induce an increase in welfare.

Keywords: international trade; labor markets; inequality; poverty; jobs (search for similar items in EconPapers)
JEL-codes: F16 J16 O19 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2023-09
New Economics Papers: this item is included in nep-int, nep-lab, nep-sea and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://docs.iza.org/dp16473.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp16473

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().