Forecasting Employment Growth in Indonesia

David Lim

Bulletin of Indonesian Economic Studies, 1997, vol. 33, issue 3, 111-119

Abstract: This note discusses the dangers of using the employment-output elasticity to forecast employment creation in Indonesia. It demonstrates the unreliability of employment-output elasticity estimates for Indonesia obtained using various methods, and argues, that, in addition to the estimation problems, the elasticity method has inherent weaknesses that should preclude its use to forecast employment growth in a dynamic world.

Date: 1997
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DOI: 10.1080/00074919712331337255

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Bulletin of Indonesian Economic Studies is currently edited by Firman Witoelar Kartaadipoetra, Arianto Patunru, Robert Sparrow, Sarah Xue Dong and Sean Muir

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