Agricultural Surplus Labor and Poverty in Indonesia

Susumu Hondai and Kazutoshi Nakamura

Chapter 4 in Lewisian Turning Point in the Chinese Economy, 2014, pp 58-75 from Palgrave Macmillan

Abstract: Abstract Indonesia has done remarkably well in the areas of both economic growth and poverty reduction through deregulating economic control policies especially since the latter half of the 1980s. The economy grew at around 8 percent annually from 1990 to 1997 and a large amount of labor force had migrated from rural to urban areas. As a result, the population below the poverty line went down from 40 percent in 1976 to 27 percent in 1984, 18 percent in 1996, and 16 percent in 2005. Although the population below the poverty line has declined significantly, there are still about 35 million people below the line and two-thirds of them are living in rural areas. Because it amounts to 18.9 percent of the rural population, poverty is one of the biggest problems in rural areas.

Keywords: Wage Rate; Poverty Line; Agricultural Sector; Real Wage; Marginal Productivity (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-39726-3_4

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DOI: 10.1057/9781137397263_4

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