Labor Markets in Indonesia: Key Challenges and Policy Issues

Guntur Sugiyarto, Mayling Oey-Gardiner and Ninasapti Triaswati
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Guntur Sugiyarto: Asian Development Bank
Mayling Oey-Gardiner: Insan Hitawasana Sejahtera
Ninasapti Triaswati: Insan Hitawasana Sejahtera

Chapter Chapter 6 in Labor Markets in Asia, 2006, pp 301-366 from Palgrave Macmillan

Abstract: Abstract Until 1997, Indonesia’s economy was among the faster growing in both the region and the developing world generally. Economic growth of around 5% over a period of 25 years had brought significant gains to workers and the population more widely. Poverty rates declined dramatically from the 1970s to 1996, and at the same time a steadily growing share of Indonesia’s labor force made the transition from agriculture to industry and services. Poverty rates decreased from around 40% in 1976 to around 11% in 1996. The share of workers in agriculture declined fairly constantly from around 55% in 1990 to around 41% in 1997. Over this period, industry saw its share of the workforce increase from 14% to 19%.

Keywords: Labor Market; Minimum Wage; Informal Sector; Industrial Relation; Labor Market Outcome (search for similar items in EconPapers)
Date: 2006
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DOI: 10.1057/9780230627383_6

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