REGIONAL SKILL DIFFERENTIALS: A STUDY OF THE INDONESIAN LABOR MARKET

Tri Mulyaningsih, Riyana Miranti (), Anne Daly () and Chris Manning ()
Additional contact information
Tri Mulyaningsih: Department of Economics, Universitas Sebelas Maret, Surakarta, Indonesia
Riyana Miranti: Institute for Governance and Policy Analysis (IGPA), Faculty of Business, Government and Law, University of Canberra, ACT 2601, Australia
Anne Daly: Faculty of Business, Government and Law, University of Canberra, ACT 2601, Australia
Chris Manning: ANU College of Asia and the Pacific Arndt-Corden Department of Economics, Crawford School of Public Policy, Australian National University, ACT Acton 2601, Australia

The Singapore Economic Review (SER), 2023, vol. 68, issue 03, 703-728

Abstract: This study investigates the patterns and trends in the returns to skill in the Indonesian labor market over the period 2007 to 2013, a period of rising earnings and income inequality. The study takes into account the labor demand and supply across regional development regions and over time. It presents evidence on the returns to skill related to structural changes in the economy through the growth of modern services and the resource boom. It confirms that skill premiums varied across regional development areas. The composition of industries across regions, female labor participation, the proportion of casual workers, the supply of tertiary-educated workers and factors unique to each region are all determinants of the regional skill premiums. The results support the policy focus on developing human capital in Indonesia to meet the rising demand for skilled workers and show the role of the manufacturing sector and minimum wages policy in reducing the skill premium.

Keywords: Skill premium; supply of labor; demand of labor; regional development area; Indonesia; human capital (search for similar items in EconPapers)
JEL-codes: I24 J01 J24 J31 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0217590819500371
Access to full text is restricted to subscribers

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:wsi:serxxx:v:68:y:2023:i:03:n:s0217590819500371

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0217590819500371

Access Statistics for this article

The Singapore Economic Review (SER) is currently edited by Euston Quah

More articles in The Singapore Economic Review (SER) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().