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The Effects of Industrialization on Education and Youth Labor in Indonesia

Author

Listed:
  • Federman Maya

    (Dept. of Economics, Pitzer College)

  • Levine David I.

    (Haas School of Business, UC Berkeley)

Abstract

This study examines the relationship between growth in manufacturing employment and youth outcomes in Indonesia from 1985 to 1995, a time of rapid industrialization. In comparison with cross-national studies, this study has a larger sample size of regions, defines data more consistently, and conducts better checks for causality and specification. We also distinguish between the effects of manufacturing employment in the region and in the household and explore potential causal mechanisms underlying the observed correlations. Overall, manufacturing employment in the region modestly increases enrollment and decreases labor force participation for male and female young teens. At the household level, employment of adult females in manufacturing is associated with lower enrollment and higher labor force participation for young women relative to young men.

Suggested Citation

  • Federman Maya & Levine David I., 2005. "The Effects of Industrialization on Education and Youth Labor in Indonesia," The B.E. Journal of Macroeconomics, De Gruyter, vol. 5(1), pages 1-34, February.
    • Handle: RePEc:bpj:bejmac:v:contributions.5:y:2005:i:1:n:1
    DOI: 10.2202/1534-6005.1243
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    Citations

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    Cited by:

    1. Ian Coxhead & Rashesh Shrestha, 2017. "Globalization and School–Work Choices in an Emerging Economy: Vietnam," Asian Economic Papers, MIT Press, vol. 16(2), pages 28-45, Summer.
    2. Ibarra-Olivo, J. Eduardo, 2021. "Foreign direct investment and youth educational outcomes in Mexican municipalities," Economics of Education Review, Elsevier, vol. 82(C).
    3. David Atkin, 2016. "Endogenous Skill Acquisition and Export Manufacturing in Mexico," American Economic Review, American Economic Association, vol. 106(8), pages 2046-2085, August.
    4. Basakha, Mehdi & Hossein Mohaqeqi Kamal, Seyed, 2019. "Industrial development and social welfare: A case study of Iran," Socio-Economic Planning Sciences, Elsevier, vol. 68(C).
    5. Heath, Rachel & Mushfiq Mobarak, A., 2015. "Manufacturing growth and the lives of Bangladeshi women," Journal of Development Economics, Elsevier, vol. 115(C), pages 1-15.

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