Labour Market Integration in Developing Countries: a Case Study of Indonesia

Param Silvapulle, Sisira Jayasuriya and Chris Manning
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Param Silvapulle: Department of Economics and Finance, La Trobe University
Chris Manning: Department of Economics and Finance, La Trobe University

No 1998.17, Working Papers from School of Economics, La Trobe University

Abstract: This paper investigates the short- and long-run Indonesian regional labour market integration using Johansen's system approach. The authors have tested for a number of co integrating relationships and common trends among West-Java, East-Java, Central-Java and Jakarta, wage rates, and for the validity of the relationships between these wages implied by perfect market integration. The authors have then analysed an error correction model incorporating long-run equilibrium relationships and short-run dynamics.

Keywords: Indonesia; Labour Markets; Developing Countries EDIRC Provider-Institution: RePEc:edi:smlatau (search for similar items in EconPapers)
Pages: 21 pages
Date: 1998
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